Marsh & McLennan Companies, Inc. (NYSE:MMC) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Marsh & McLennan Companies, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 18.03% to $0.72 in the quarter versus EPS of $0.61 in the year-earlier quarter.
Revenue: Rose 2.05% to $3.09 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Marsh & McLennan Companies, Inc. reported adjusted EPS income of $0.72 per share. By that measure, the company beat the mean analyst estimate of $0.67. It missed the average revenue estimate of $3.14 billion.
Quoting Management: Dan Glaser, President and CEO, said: “The Company continued to deliver strong financial results in the second quarter. Adjusted operating income grew 13%, reflecting excellent margin expansion in both the Risk and Insurance Services and Consulting segments. In the quarter, Marsh produced underlying revenue growth across all major geographies. Guy Carpenter generated impressive underlying revenue growth, driven by its U.S. and International operations. The Consulting segment, led by Mercer, produced strong growth in earnings with meaningful margin expansion,” concluded Mr. Glaser.
Key Stats (on next page)…
Revenue decreased 1.22% from $3.13 billion in the previous quarter. EPS decreased 1.37% from $0.73 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.45 and has not changed. For the current year, the average estimate is a profit of $2.42, which is the same with that ninety days ago.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)