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Marsh & McLennan (MMC) Q4 Earnings Top Estimates, Up Y/Y
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Marsh & McLennan Companies, Inc. (MMC - Free Report) reported fourth-quarter 2017 operating earnings per share of $1.05, beating the Zacks Consensus Estimate by 10.5%. Earnings improved 18% year over year on higher revenues.
For 2017, adjusted earnings came in at $3.92 per share. The figure not only surpassed the Zacks Consensus Estimate of $3.82 by 3% but also rose 15% from 2016.
For the quarter, Marsh & McLennan’s consolidated revenues were $3.7 million, up 10% (4% on an underlying basis) year over year. Revenues beat the Zacks Consensus Estimate by 3%.
For 2017, the company reported consolidated revenues of $14 billion that rose 6% (3% on an underlying basis) from 2016.
Total operating expenses of $3 billion were up 10% year over year.
The effective tax rate in the fourth quarter was 95.5% compared with 24.9% in the prior-year quarter.
Quarterly Segment Results
Risk and Insurance Services
Revenues at the Risk and Insurance Services segment were $2 billion, up 9% (3% on an underlying basis) year over year. Adjusted operating income also grew 12% to $473 million from the prior-year quarter.
A unit within this segment, Marsh, reported revenues of $1.7 million, up 9% (3% on an underlying basis) year over year. In U.S./Canada, underlying revenues rose 4%. Underlying revenue growth from international operations was 1%, reflecting underlying growth of 5% in Asia Pacific, and 9% in Latin America. This was partially offset by a decline of 3% in EMEA.
Another unit under this segment — Guy Carpenter — displayed revenue growth of 7% year over year on an underlying basis to $239 million.
Consulting
The Consulting segment's revenues increased 10% (6% on an underlying basis) year over year to $1.7 billion. Additionally, adjusted operating income increased 10% year over year to $330 million.
A unit within this segment — Mercer — reported revenues of $1.2 billion, up 9% (4% on an underlying basis) year over year.
Another unit, Oliver Wyman Group, reported revenues of $546 million, up 9% year over year on an underlying basis.
Marsh & McLennan Companies, Inc. Price, Consensus and EPS Surprise
Performance of Other Companies in the Finance Sector
Among other players from the insurance industry that have reported fourth-quarter earnings till now, the bottom line of Brown & Brown, Inc. (BRO - Free Report) , MGIC Investment Corporation (MTG - Free Report) and The Progressive Corporation (PGR - Free Report) beat the respective Zacks Consensus Estimate.
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Marsh & McLennan (MMC) Q4 Earnings Top Estimates, Up Y/Y
Marsh & McLennan Companies, Inc. (MMC - Free Report) reported fourth-quarter 2017 operating earnings per share of $1.05, beating the Zacks Consensus Estimate by 10.5%. Earnings improved 18% year over year on higher revenues.
For 2017, adjusted earnings came in at $3.92 per share. The figure not only surpassed the Zacks Consensus Estimate of $3.82 by 3% but also rose 15% from 2016.
For the quarter, Marsh & McLennan’s consolidated revenues were $3.7 million, up 10% (4% on an underlying basis) year over year. Revenues beat the Zacks Consensus Estimate by 3%.
For 2017, the company reported consolidated revenues of $14 billion that rose 6% (3% on an underlying basis) from 2016.
Total operating expenses of $3 billion were up 10% year over year.
The effective tax rate in the fourth quarter was 95.5% compared with 24.9% in the prior-year quarter.
Quarterly Segment Results
Risk and Insurance Services
Revenues at the Risk and Insurance Services segment were $2 billion, up 9% (3% on an underlying basis) year over year. Adjusted operating income also grew 12% to $473 million from the prior-year quarter.
A unit within this segment, Marsh, reported revenues of $1.7 million, up 9% (3% on an underlying basis) year over year. In U.S./Canada, underlying revenues rose 4%. Underlying revenue growth from international operations was 1%, reflecting underlying growth of 5% in Asia Pacific, and 9% in Latin America. This was partially offset by a decline of 3% in EMEA.
Another unit under this segment — Guy Carpenter — displayed revenue growth of 7% year over year on an underlying basis to $239 million.
Consulting
The Consulting segment's revenues increased 10% (6% on an underlying basis) year over year to $1.7 billion. Additionally, adjusted operating income increased 10% year over year to $330 million.
A unit within this segment — Mercer — reported revenues of $1.2 billion, up 9% (4% on an underlying basis) year over year.
Another unit, Oliver Wyman Group, reported revenues of $546 million, up 9% year over year on an underlying basis.
Marsh & McLennan Companies, Inc. Price, Consensus and EPS Surprise
Marsh & McLennan Companies, Inc. Price, Consensus and EPS Surprise | Marsh & McLennan Companies, Inc. Quote
Financial Update
Marsh & McLennan exited the quarter with cash and cash equivalents of $1.2 billion, up 17% from 2016 end.
As of Dec 31, 2017, Marsh & McLennan’s total assets were $20.4 billion, up 12.1% from year-end 2016.
Total equity was $7.4 billion, up 18.6% from year-end 2016.
Capital Deployment
The company repurchased 3.6 million shares of its common stock for $300 million in the fourth quarter.
For 2017, the company bought back 11.5 million shares for $900 million.
Zacks Rank
Marsh & McLennan carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies in the Finance Sector
Among other players from the insurance industry that have reported fourth-quarter earnings till now, the bottom line of Brown & Brown, Inc. (BRO - Free Report) , MGIC Investment Corporation (MTG - Free Report) and The Progressive Corporation (PGR - Free Report) beat the respective Zacks Consensus Estimate.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>