Marsh & McLennan Companies Inc. Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Marsh & McLennan Companies, Inc. (NYSE:MMC) will unveil its latest earnings on Tuesday, February 14, 2012. Marsh & McLennan is a global professional services firm providing advice and solutions in the areas of risk, strategy, and human capital.

Marsh & McLennan Companies, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 45 cents per share, a rise of 9.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 47 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 46 cents during the last month. For the year, analysts are projecting profit of $1.75 per share, a rise of 6.7% from last year.

Past Earnings Performance: Last quarter, the company met expectations by reporting net income of 24 cents per share last quarter. In the previous second quarter, the company beat estimates by 2 cents.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 6.5% in revenue from the year-earlier quarter to $2.96 billion.

Analyst Ratings: Analysts are bullish on this stock with 11 analysts rating it as a buy, none rating it as a sell and five rating it as a hold.

A Look Back: In the third quarter, profit fell 22.6% to $130 million (24 cents a share) from $168 million (30 cents a share) the year earlier, meeting analyst expectations. Revenue rose 11.2% to $2.81 billion from $2.52 billion.

Key Stats:

The decrease in profit in the third quarter broke a streak of three consecutive quarters of year-over-year profit increases. Net income rose 19.5% in the second quarter, 31% in the first quarter and 782.6% in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue rose 12.4% in the second quarter from the year earlier, climbed 3.2% in the first quarter from the year-ago quarter and 1.9% in the fourth quarter of the last fiscal year.

Stock Price Performance: During November 10, 2011 to February 8, 2012, the stock price had risen $2.18 (7.2%) from $30.25 to $32.43. It saw one of its worst periods between November 15, 2011 and November 23, 2011 when shares fell for seven-straight days, falling 8.5% (-$2.59) over that span. The stock price saw one of its best stretches over the last year between February 10, 2011 and February 18, 2011 when shares rose for seven-straight days, rising 8% (+$2.22) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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