Marsh & McLennan Companies Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Marsh & McLennan Companies, Inc. (NYSE:MMC) will unveil its latest earnings on Wednesday, November 2, 2011. 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 24 cents per share, a decline of 11.1% 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 33 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 27 cents during the last month. Analysts are projecting profit to rise by 9.1% versus last year to $1.79.

Past Earnings Performance: Last quarter, the company topped estimates by 0 cents, coming in at profit of 50 cents per share against a mean estimate of net income of 48 cents. The company fell in line with estimates in the first quarter.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 8.7% in revenue from the year-earlier quarter to $2.74 billion.

Analyst Ratings: Analysts are bullish on this stock with 10 analysts rating it as a buy, none rating it as a sell and six rating it as a hold. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

A Look Back: In the second quarter, profit rose 19.5% to $282 million (50 cents a share) from $236 million (43 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 12.4% to $2.93 billion from $2.61 billion.

Key Stats:

The company has seen net income rise in three straight quarters. Net income rose 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 3.2% in the first quarter from the year earlier, climbed 1.9% in the fourth quarter of the last fiscal year from the year-ago quarter and 0% in the third quarter of the last fiscal year.

Competitors to Watch: Aon Corporation (NYSE:AON), Arthur J. Gallagher & Co. (NYSE:AJG), Brown & Brown, Inc. (NYSE:BRO), Willis Group Holdings PLC (NYSE:WSH), InsWeb Corporation (NASDAQ:INSW), Fortegra Financial Corp (NYSE:FRF), Verisk Analytics, Inc. (NASDAQ:VRSK), CNinsure Inc. (NASDAQ:CISG), and Life Partners Hldgs., Inc. (NASDAQ:LPHI).

Stock Price Performance: During September 29, 2011 to October 27, 2011, the stock price had risen $4.92 (18.3%) from $26.87 to $31.79. It saw one of its worst periods between September 15, 2011 and September 22, 2011 when shares fell for six-straight days, falling 7.6% (-$2.16) 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% (+$2.24) over that span. Shares are up $5.25 (+19.8%) year to date.

(Source: Xignite Financials)

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

 

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