S&P 500 (NYSE:SPY) component Marsh & McLennan (NYSE:MMC) will unveil its latest earnings on Tuesday, November 6, 2012. Marsh & McLennan is a global professional services firm providing advice and solutions in the areas of risk, strategy, and human capital.
Marsh & McLennan Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for profit of 38 cents per share, a rise of 58.3% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 39 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 38 cents during the last month. For the year, analysts are projecting net income of $2.15 per share, a rise of 22.2% from last year.
Past Earnings Performance: Last quarter, the company reported profit of 59 cents per share versus a mean estimate of net income of. The company has beaten estimates for the past three quarters.
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A Look Back: In the second quarter, profit rose 16.7% to $329 million (59 cents a share) from $282 million (50 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 3.3% to $3.03 billion from $2.93 billion.
Wall St. Revenue Expectations: Analysts are projecting a rise of 3.9% in revenue from the year-earlier quarter to $2.92 billion.
Analyst Ratings: With 12 analysts rating the stock a buy, one rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.
After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 26.1% in the fourth quarter of the last fiscal year and 6.8% in the first quarter before increasing again in the second quarter.
On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 11.2% in the third quarter of the last fiscal year, 4.4% in the fourth quarter of the last fiscal year and 5.8% in the first quarter before increasing again in the second quarter.
Stock Price Performance: Between October 25, 2012 and October 31, 2012, the stock price rose 64 cents (1.9%), from $33.39 to $34.03. The stock price saw one of its best stretches over the last year between June 25, 2012 and July 2, 2012, when shares rose for six straight days, increasing 5.1% (+$1.58) over that span. It saw one of its worst periods between November 15, 2011 and November 23, 2011 when shares fell for seven straight days, dropping 8.5% (-$2.61) over that span.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.64 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.66 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 4.6% to $3.17 billion while assets rose 3.2% to $5.2 billion.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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