Marsh & McLennan Companies, Inc. (MMC - Free Report) reported first-quarter 2018 adjusted earnings per share of $1.38, beating the Zacks Consensus Estimate by 6.1%. Also, the bottom line improved 28% year over year.
In the quarter under review, Marsh & McLennan’s consolidated revenues were $4 billion, up 4% on an underlying basis. Moreover, the top line outpaced the Zacks Consensus Estimate by 4.3%.
Total operating expenses of $3,092 million in the first quarter were up 12.3% year over year.
Quarterly Segment Results
Risk and Insurance Services
Revenues at the Risk and Insurance Services segment were $2.3 billion, up 3% on an underlying basis. Adjusted operating income also grew 30% to $723 million from the prior-year quarter.
Marsh, a unit within this segment, generated revenues of $1.7 billion, up 2% on an underlying basis. In U.S./Canada, underlying revenues rose 3%. Underlying revenue growth remained flat from international operations, reflecting underlying growth of 4% in Asia Pacific and 6% in Latin America. This was partially offset by a decline of 2% in EMEA.
Another unit under this segment — Guy Carpenter — displayed revenue growth of 7% on an underlying basis to $637 million.
Consulting
The Consulting segment's revenues increased 5% on an underlying basis to $1.7 billion. Additionally, adjusted operating income increased 8% year over year to $248 million.
A unit within this segment — Mercer — reported revenues of $1.2 billion, up 5% on an underlying basis. Wealth with revenues of $565 million, grew 3% on an underlying basis.
Another unit, Oliver Wyman Group, posted revenues of $497 million, up 6% on an underlying basis.
Marsh & McLennan Companies, Inc. Price, Consensus and EPS Surprise
Financial Update
Marsh & McLennan exited the quarter with cash and cash equivalents of $1,168 million, down 3% from 2017 end.
As of Mar 31, 2018, Marsh & McLennan’s total assets were $21,379 million, up 4.6% from year-end 2017.
Total equity was $8,021 million, up 7.8% from year-end 2017.
Capital Deployment
The company repurchased 3 million shares of its common stock for $250 million in the first quarter.
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 in the Finance sector, which have reported first-quarter earnings so far, Bank of America Corporation (BAC - Free Report) , Citigroup Inc. (C - Free Report) and U.S. Bancorp (USB - Free Report) beat the respective Zacks Consensus Estimate.
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Marsh & McLennan Companies, Inc. (MMC - Free Report) reported first-quarter 2018 adjusted earnings per share of $1.38, beating the Zacks Consensus Estimate by 6.1%. Also, the bottom line improved 28% year over year.
In the quarter under review, Marsh & McLennan’s consolidated revenues were $4 billion, up 4% on an underlying basis. Moreover, the top line outpaced the Zacks Consensus Estimate by 4.3%.
Total operating expenses of $3,092 million in the first quarter were up 12.3% year over year.
Quarterly Segment Results
Risk and Insurance Services
Revenues at the Risk and Insurance Services segment were $2.3 billion, up 3% on an underlying basis. Adjusted operating income also grew 30% to $723 million from the prior-year quarter.
Marsh, a unit within this segment, generated revenues of $1.7 billion, up 2% on an underlying basis. In U.S./Canada, underlying revenues rose 3%. Underlying revenue growth remained flat from international operations, reflecting underlying growth of 4% in Asia Pacific and 6% in Latin America. This was partially offset by a decline of 2% in EMEA.
Another unit under this segment — Guy Carpenter — displayed revenue growth of 7% on an underlying basis to $637 million.
Consulting
The Consulting segment's revenues increased 5% on an underlying basis to $1.7 billion. Additionally, adjusted operating income increased 8% year over year to $248 million.
A unit within this segment — Mercer — reported revenues of $1.2 billion, up 5% on an underlying basis. Wealth with revenues of $565 million, grew 3% on an underlying basis.
Another unit, Oliver Wyman Group, posted revenues of $497 million, up 6% on an underlying basis.
Marsh & McLennan Companies, Inc. Price, Consensus and EPS Surprise
Financial Update
Marsh & McLennan exited the quarter with cash and cash equivalents of $1,168 million, down 3% from 2017 end.
As of Mar 31, 2018, Marsh & McLennan’s total assets were $21,379 million, up 4.6% from year-end 2017.
Total equity was $8,021 million, up 7.8% from year-end 2017.
Capital Deployment
The company repurchased 3 million shares of its common stock for $250 million in the first quarter.
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 in the Finance sector, which have reported first-quarter earnings so far, Bank of America Corporation (BAC - Free Report) , Citigroup Inc. (C - Free Report) and U.S. Bancorp (USB - Free Report) beat the respective Zacks Consensus Estimate.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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