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Marsh & McLennan's (MMC) Q2 Earnings Miss Estimates, Up Y/Y (revised)
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Marsh & McLennan Companies, Inc. (MMC - Free Report) ) reported second-quarter 2018 adjusted earnings per share of $1.10, missing the Zacks Consensus Estimate by 0.9%. Also, the bottom line improved 10% year over year.
Marsh & McLennan Companies, Inc. Price and EPS Surprise
Marsh & McLennan’s consolidated revenues were $3.7 billion, up 3% on an underlying basis. This upside is majorly attributable to the Risk and Insurances Services plus Consulting Segments. Moreover, the top line outpaced the Zacks Consensus Estimate by 4.3%.
Total operating expenses of $3.04 billion in the second quarter were up 8.9% year over year due to high compensation and benefits as well as other operating expenses.
Quarterly Segment Results
Risk and Insurance Services
Revenues at the Risk and Insurance Services segment were $2.1 billion, up 5% on an underlying basis. Adjusted operating income also grew 9% to $532 million from the prior-year quarter’s level.
Marsh, a unit within this segment, generated revenues of $1.7 billion, up 5% on an underlying basis. In U.S./Canada, underlying revenues rose 8%. Underlying revenue growth from international operations includes the same of 6% in Asia Pacific, 1% in EMEA and 3% in Latin America.
Another unit under this segment — Guy Carpenter — displayed revenue growth of 5% on an underlying basis to $332 million in the quarter under review.
Consulting
The Consulting segment's revenues inched up 1% on an underlying basis to $1.7 billion. However, adjusted operating income declined 5% year over year to $267 million.
A unit within this segment — Mercer — reported revenues of $1.2 billion, up 2% on an underlying basis. Wealth, with revenues of $552 million, nudged up 1% on an underlying basis.
Another unit, Oliver Wyman Group, posted revenues of $492 million, down 2% on an underlying basis.
Financial Update
Marsh & McLennan exited the quarter with cash and cash equivalents of $1.036 billion, down 14% from the figure at 2017 end.
As of Jun 30, 2018, Marsh & McLennan’s total assets were $2.1 billion, up 3.6% from the tally at year-end 2017.
Total equity was $7.8 billion, up 4.8% from the level at year-end 2017.
Capital Deployment
The company bought back 3.1 million shares of its common stock for $250 million in the second quarter. The Board of Directors of the company has also hiked the quarterly dividend by 11%, payable Aug 15, 2018.
Performance of Other Companies in the Finance Sector
The Progressive Corporation’s (PGR - Free Report) results beat estimates in the second quarter of 2018.
Aon plc (AON - Free Report) is set to release second-quarter 2018 earnings on Jul 27 and the consensus mark for the same stands at $1.63 per share, representing a 12.4% increase in the year-ago period. The stock carries a Zacks Rank #3 (Hold).
Willis Towers Watson Public Limited Company is slated to release second-quarter 2018 earnings on Aug 2 and the Zacks Consensus Estimate for the same is pegged at $1.67, reflecting a year-over-year rise of 15.2%. The stock has a Zacks Rank of 3.
(NOTE: We are reissuing this article to correct two mistake. The original article, issued earlier today, July 26, 2018, should no longer be relied upon.)
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Marsh & McLennan's (MMC) Q2 Earnings Miss Estimates, Up Y/Y (revised)
Marsh & McLennan Companies, Inc. (MMC - Free Report) ) reported second-quarter 2018 adjusted earnings per share of $1.10, missing the Zacks Consensus Estimate by 0.9%. Also, the bottom line improved 10% year over year.
Marsh & McLennan Companies, Inc. Price and EPS Surprise
Marsh & McLennan Companies, Inc. Price and EPS Surprise | Marsh & McLennan Companies, Inc. Quote
Marsh & McLennan’s consolidated revenues were $3.7 billion, up 3% on an underlying basis. This upside is majorly attributable to the Risk and Insurances Services plus Consulting Segments. Moreover, the top line outpaced the Zacks Consensus Estimate by 4.3%.
Total operating expenses of $3.04 billion in the second quarter were up 8.9% year over year due to high compensation and benefits as well as other operating expenses.
Quarterly Segment Results
Risk and Insurance Services
Revenues at the Risk and Insurance Services segment were $2.1 billion, up 5% on an underlying basis. Adjusted operating income also grew 9% to $532 million from the prior-year quarter’s level.
Marsh, a unit within this segment, generated revenues of $1.7 billion, up 5% on an underlying basis. In U.S./Canada, underlying revenues rose 8%. Underlying revenue growth from international operations includes the same of 6% in Asia Pacific, 1% in EMEA and 3% in Latin America.
Another unit under this segment — Guy Carpenter — displayed revenue growth of 5% on an underlying basis to $332 million in the quarter under review.
Consulting
The Consulting segment's revenues inched up 1% on an underlying basis to $1.7 billion. However, adjusted operating income declined 5% year over year to $267 million.
A unit within this segment — Mercer — reported revenues of $1.2 billion, up 2% on an underlying basis. Wealth, with revenues of $552 million, nudged up 1% on an underlying basis.
Another unit, Oliver Wyman Group, posted revenues of $492 million, down 2% on an underlying basis.
Financial Update
Marsh & McLennan exited the quarter with cash and cash equivalents of $1.036 billion, down 14% from the figure at 2017 end.
As of Jun 30, 2018, Marsh & McLennan’s total assets were $2.1 billion, up 3.6% from the tally at year-end 2017.
Total equity was $7.8 billion, up 4.8% from the level at year-end 2017.
Capital Deployment
The company bought back 3.1 million shares of its common stock for $250 million in the second quarter. The Board of Directors of the company has also hiked the quarterly dividend by 11%, payable Aug 15, 2018.
Zacks Rank
Marsh & McLennan carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies in the Finance Sector
The Progressive Corporation’s (PGR - Free Report) results beat estimates in the second quarter of 2018.
Aon plc (AON - Free Report) is set to release second-quarter 2018 earnings on Jul 27 and the consensus mark for the same stands at $1.63 per share, representing a 12.4% increase in the year-ago period. The stock carries a Zacks Rank #3 (Hold).
Willis Towers Watson Public Limited Company is slated to release second-quarter 2018 earnings on Aug 2 and the Zacks Consensus Estimate for the same is pegged at $1.67, reflecting a year-over-year rise of 15.2%. The stock has a Zacks Rank of 3.
(NOTE: We are reissuing this article to correct two mistake. The original article, issued earlier today, July 26, 2018, should no longer be relied upon.)
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>