We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What to Expect for Marsh & McLennan's (MMC) Q4 Earnings
Read MoreHide Full Article
Marsh & McLennan Companies, Inc. (MMC - Free Report) will release fourth-quarter 2020 results on Jan 28, before the market opens.
In the last reported quarter, the company delivered adjusted earnings per share of 82 cents, surpassing the Zacks Consensus Estimate by 19% on reduced expenses and a solid contribution from its Risk and Insurance Services segment. Moreover, the bottom line increased 6.5% year over year.
Q4 Earnings & Revenue Expectations
The Zacks Consensus Estimate for Marsh & McLennan’s fourth-quarter earnings of $1.14 per share implies a 4.2% decrease from the prior-year quarter’s reported number. This downside is due to lower revenues and higher expenses. On its last earnings call, management had said that the company’s costs are likely to witness pressure from easing spending restrictions, strategic hiring and costs related to employee related activity.
Likewise, the consensus estimate for sales of $4.2 billion suggests a 0.2% dip from the year-ago period’s reported figure. This downtrend can be attributed to muted revenues at its Consulting segment.
Let’s see, how things are shaping up prior to this announcement.
The Risk and Insurance Services segment is expected to have contributed to overall revenues, aided by Marsh. However, Guy Carpenter might reflect depressed results. Management expected Guy Carpenter’s results to be affected as the fourth quarter is seasonally smaller.
The consensus mark of $2.4 billion for Risk and Insurance Services segment’s revenues indicates an upside of 4.6% from the year-earlier quarter’s reported number. The consensus estimate for Marsh and Guy Carpenter revenues of $2.3 billion and $157 million each indicates a respective hike of 4.3% and 3.3% from the respective year-earlier period’s reported figures.
The Consulting segment is likely to have witnessed weak results in the fourth quarter due to softer revenues at both its units of Oliver Wyman and Mercer. Management also anticipated Mercer’s underlying revenues to decline in the fourth quarter. The Zacks Consensus Estimate for revenues from the Consulting segment of $1.8 billion indicates a 4.6% drop from the prior-year quarter’s reported figure.
Oliver Wyman is also likely to have witnessed poor revenues in the final quarter. The consensus mark for revenues from Mercer and Oliver Wyman of $1.3 billion and $509 million each hints at a respective 2.8% and 9% decline from the corresponding prior-year quarter’s reported numbers.
Per the company’s last earnings call, management had confirmed that it will not repurchase shares in the remainder of 2020.
On its last earnings call, the company expected foreign exchange to be slightly beneficial to its earnings.
However, an elevated expense level might have persistently weighed on its margins. Management forecasted adjusted corporate expense of $58 million for the fourth quarter.
It also anticipated incurring $127 million of interest expenses.
What the Quantitative Model Predicts
Our proven model predicts an earnings beat for Marsh & McLennan this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Marsh & McLennan has an Earnings ESP of +2.75%. This is because the Most Accurate Estimate is pegged at $1.17, higher than the Zacks Consensus Estimate of $1.14. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Marsh & McLennan Companies, Inc. Price and EPS Surprise
Zacks Rank: Marsh & McLennan carries a Zacks Rank #3, which increases the predictive power of ESP.
Other Stocks to Consider
Some other stocks worth considering from the insurance industry with the perfect mix of elements to surpass estimates in the upcoming releases are as follows:
American International Group, Inc. (AIG - Free Report) has a Zacks Rank of 3 and an Earnings ESP of +0.85%.
Aflac Incorporated (AFL - Free Report) is Zacks #3 Ranked and has an Earnings ESP of +0.64%.
Aon plc (AON - Free Report) has an Earnings ESP of +0.30% and is a #3 Ranked player.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
What to Expect for Marsh & McLennan's (MMC) Q4 Earnings
Marsh & McLennan Companies, Inc. (MMC - Free Report) will release fourth-quarter 2020 results on Jan 28, before the market opens.
In the last reported quarter, the company delivered adjusted earnings per share of 82 cents, surpassing the Zacks Consensus Estimate by 19% on reduced expenses and a solid contribution from its Risk and Insurance Services segment. Moreover, the bottom line increased 6.5% year over year.
Q4 Earnings & Revenue Expectations
The Zacks Consensus Estimate for Marsh & McLennan’s fourth-quarter earnings of $1.14 per share implies a 4.2% decrease from the prior-year quarter’s reported number. This downside is due to lower revenues and higher expenses. On its last earnings call, management had said that the company’s costs are likely to witness pressure from easing spending restrictions, strategic hiring and costs related to employee related activity.
Likewise, the consensus estimate for sales of $4.2 billion suggests a 0.2% dip from the year-ago period’s reported figure. This downtrend can be attributed to muted revenues at its Consulting segment.
Let’s see, how things are shaping up prior to this announcement.
The Risk and Insurance Services segment is expected to have contributed to overall revenues, aided by Marsh. However, Guy Carpenter might reflect depressed results. Management expected Guy Carpenter’s results to be affected as the fourth quarter is seasonally smaller.
The consensus mark of $2.4 billion for Risk and Insurance Services segment’s revenues indicates an upside of 4.6% from the year-earlier quarter’s reported number. The consensus estimate for Marsh and Guy Carpenter revenues of $2.3 billion and $157 million each indicates a respective hike of 4.3% and 3.3% from the respective year-earlier period’s reported figures.
The Consulting segment is likely to have witnessed weak results in the fourth quarter due to softer revenues at both its units of Oliver Wyman and Mercer. Management also anticipated Mercer’s underlying revenues to decline in the fourth quarter. The Zacks Consensus Estimate for revenues from the Consulting segment of $1.8 billion indicates a 4.6% drop from the prior-year quarter’s reported figure.
Oliver Wyman is also likely to have witnessed poor revenues in the final quarter. The consensus mark for revenues from Mercer and Oliver Wyman of $1.3 billion and $509 million each hints at a respective 2.8% and 9% decline from the corresponding prior-year quarter’s reported numbers.
Per the company’s last earnings call, management had confirmed that it will not repurchase shares in the remainder of 2020.
On its last earnings call, the company expected foreign exchange to be slightly beneficial to its earnings.
However, an elevated expense level might have persistently weighed on its margins. Management forecasted adjusted corporate expense of $58 million for the fourth quarter.
It also anticipated incurring $127 million of interest expenses.
What the Quantitative Model Predicts
Our proven model predicts an earnings beat for Marsh & McLennan this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Marsh & McLennan has an Earnings ESP of +2.75%. This is because the Most Accurate Estimate is pegged at $1.17, higher than the Zacks Consensus Estimate of $1.14. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Marsh & McLennan Companies, Inc. Price and EPS Surprise
Marsh & McLennan Companies, Inc. price-eps-surprise | Marsh & McLennan Companies, Inc. Quote
Zacks Rank: Marsh & McLennan carries a Zacks Rank #3, which increases the predictive power of ESP.
Other Stocks to Consider
Some other stocks worth considering from the insurance industry with the perfect mix of elements to surpass estimates in the upcoming releases are as follows:
American International Group, Inc. (AIG - Free Report) has a Zacks Rank of 3 and an Earnings ESP of +0.85%.
Aflac Incorporated (AFL - Free Report) is Zacks #3 Ranked and has an Earnings ESP of +0.64%.
Aon plc (AON - Free Report) has an Earnings ESP of +0.30% and is a #3 Ranked player.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>