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Marsh & McLennan (MMC): What's in Store for Q2 Earnings?
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Global insurance broker Marsh & McLennan Companies, Inc. (MMC - Free Report) is scheduled to release second-quarter 2016 financial results before the opening bell on Jul 28.
In the last reported quarter, the company posted a positive earnings surprise of 3.37%. With respect to earnings surprise, the company surpassed estimates in three out of last four quarters, with an average beat of 2.45%. Let's see how things are shaping up for this announcement.
Factors at Play
Marsh & McLennan’s revenues have been growing consistently for the past 12 quarters by at least 3% and we expect the trend to continue in the second quarter. Revenues will see an upside from the company’s vast geographical footprint. Both its segments – Risk & Insurance Services and Consulting – are expected to see top-line growth.
Marsh & McLennan’s results are being impacted significantly by the strength of the U.S. dollar against other major currencies.
Also, Marsh & McLennan’s earnings may suffer from the prolonged period of low interest rates and benign loss activity. These may have led to price declines and put pressure on its underwriting margins and ROEs.
Nevertheless, numerous strategic acquisitions made by the company in the recent past that have resulted in a new generation of clients will trigger growth.
Moreover, disciplined expense management should drive margins.
Earnings Whispers
Our proven model does not conclusively show that Marsh & McLennan is likely to beat the Zacks Consensus Estimate in the second quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy) or at least 2 (Buy) or 3 (Hold) for this to happen. But this is not the case here as elaborated below.
Zacks ESP: Marsh & McLennan’s Most Accurate estimate is pegged at 90 cents per share, which is one cent below the Zacks Consensus Estimate. The Earnings ESP is thus -1.10%.
Zacks Rank: Marsh & McLennan has a Zacks Rank #3. Though a favorable Zacks Rank increases the predictive power of ESP, the company’s ESP of -1.10% leaves our prediction inconclusive.
Here are some companies you may want to consider as these have the right combination of elements to post an earnings beat this quarter:
LPL Financial Holdings Inc. (LPLA - Free Report) has an Earnings ESP of +2.33% and a Zacks Rank #3. The company is scheduled to report second-quarter earnings results on Jul 28.
Global Payments Inc. (GPN - Free Report) has an Earnings ESP of +1.47% and a Zacks Rank #3. The company is scheduled to report second-quarter earnings results on Jul 28.
Allstate Corp. (ALL - Free Report) has an earnings ESP of +3.7% and a Zacks Rank #3. The company is scheduled to report second-quarter earnings results on Aug 3.
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Marsh & McLennan (MMC): What's in Store for Q2 Earnings?
Global insurance broker Marsh & McLennan Companies, Inc. (MMC - Free Report) is scheduled to release second-quarter 2016 financial results before the opening bell on Jul 28.
In the last reported quarter, the company posted a positive earnings surprise of 3.37%. With respect to earnings surprise, the company surpassed estimates in three out of last four quarters, with an average beat of 2.45%. Let's see how things are shaping up for this announcement.
Factors at Play
Marsh & McLennan’s revenues have been growing consistently for the past 12 quarters by at least 3% and we expect the trend to continue in the second quarter. Revenues will see an upside from the company’s vast geographical footprint. Both its segments – Risk & Insurance Services and Consulting – are expected to see top-line growth.
Marsh & McLennan’s results are being impacted significantly by the strength of the U.S. dollar against other major currencies.
Also, Marsh & McLennan’s earnings may suffer from the prolonged period of low interest rates and benign loss activity. These may have led to price declines and put pressure on its underwriting margins and ROEs.
Nevertheless, numerous strategic acquisitions made by the company in the recent past that have resulted in a new generation of clients will trigger growth.
Moreover, disciplined expense management should drive margins.
Earnings Whispers
Our proven model does not conclusively show that Marsh & McLennan is likely to beat the Zacks Consensus Estimate in the second quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy) or at least 2 (Buy) or 3 (Hold) for this to happen. But this is not the case here as elaborated below.
Zacks ESP: Marsh & McLennan’s Most Accurate estimate is pegged at 90 cents per share, which is one cent below the Zacks Consensus Estimate. The Earnings ESP is thus -1.10%.
Zacks Rank: Marsh & McLennan has a Zacks Rank #3. Though a favorable Zacks Rank increases the predictive power of ESP, the company’s ESP of -1.10% leaves our prediction inconclusive.
MARSH &MCLENNAN Price and EPS Surprise
MARSH &MCLENNAN Price and EPS Surprise | MARSH &MCLENNAN Quote
Stocks to Consider
Here are some companies you may want to consider as these have the right combination of elements to post an earnings beat this quarter:
LPL Financial Holdings Inc. (LPLA - Free Report) has an Earnings ESP of +2.33% and a Zacks Rank #3. The company is scheduled to report second-quarter earnings results on Jul 28.
Global Payments Inc. (GPN - Free Report) has an Earnings ESP of +1.47% and a Zacks Rank #3. The company is scheduled to report second-quarter earnings results on Jul 28.
Allstate Corp. (ALL - Free Report) has an earnings ESP of +3.7% and a Zacks Rank #3. The company is scheduled to report second-quarter earnings results on Aug 3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>