(AJG) - Estimates for this quarter and next increased 18.6% and 39.4%, respectively, over the past 60 days

Arthur J. Gallagher & Co (AJG) is the world's fourth-largest insurance brokerage and risk management services firm. Analysts' earnings estimates have been on the rise for this Zacks #1 Rank stock. The Board of Directors recently declared a quarterly cash dividend of 30 cents per share. AJG is currently yielding 4.5% and has a five-year average dividend yield of 2.9%. Full Analysis Arthur J. Gallagher & Co. and its subsidiaries operate as an insurance brokerage and risk management services firm. The company has operations in seven countries and does business in more than 100 countries through a network of correspondent brokers and consultants. On Jul 25, AJG reported its third straight quarter of better-than expected earnings. Profits for the second quarter reached $36.6 million, or 37 cents per share, which edged past the Street by a penny. Revenues decreased slightly to $370.6 million compared to $371.1 million in the prior-year period. However, AJG's brokerage segment advanced 9% while its risk management increased 10%. Consensus estimates have been trending higher for the next two quarters, as well as for the full years of 2006 and 2007. Estimates for this quarter and next increased 18.6% and 39.4%, respectively, over the past 60 days. Meanwhile, earnings expectations for 2006 rose 6.3% over the same time frame and are now expected at $1.51, while forecasts for 2007 are up by 7.5% to $1.72. On Jul 20, the Board of Directors declared a regular quarterly cash dividend of 30 cents per common share of stock. The dividend is payable on Oct 13 to shareholders of record as of Sep 29. This equates to a hefty current dividend yield of 4.5% and a five-year average dividend yield of 2.9%. Earnings per share grew 8.6% over the past five years and are forecasted to grow by a larger magnitude going forward—-11.0% over the next 3-5 years. The company increased revenues for nine years running. The company received some bad news on Aug 30 when it's Chairman of the Board, Robert E. (Bob) Gallagher, passed away. Gallagher joined his father's insurance agency in 1947 and was instrumental in building the company into a global, billion dollar enterprise. Management's effectiveness was quite apparent when looking at AJG's return on equity. The company's ROE exceeds that of the industry average--22% compared to 16%. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home