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Marsh & McLennan (MMC) to Post Q1 Earnings: What's in Store?
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Marsh & McLennan Companies, Inc. (MMC - Free Report) is slated to report first-quarter 2022 earnings on Apr 21, before the market opens.
In fourth-quarter 2021, Marsh & McLennan reported adjusted earnings per share of $1.36, which outpaced the Zacks Consensus Estimate by 1.5%. The bottom line rose 14% year over year.
Results reflect growing revenues and robust contributions from its Risk and Insurance Services, and Consulting segments, partly offset by elevated costs.
Q1 Estimates
The Zacks Consensus Estimate for MMC’s first-quarter earnings per share is pegged at $2.13, which indicates an improvement of 7% from the prior-year quarter’s reported figure.
The consensus mark for revenues stands at $5.52 billion, suggesting growth of 8.7% from the year-ago quarter’s reported number.
Earnings Surprise History
Marsh & McLennan boasts an impressive earnings surprise history. Its bottom line beat estimates in each of the trailing four quarters, the average being 12.72%. This is depicted in the chart below:
Marsh & McLennan Companies, Inc. Price and EPS Surprise
Marsh & McLennan’s first-quarter performance is likely to have benefited from higher revenues and solid contributions from its Risk and Insurance Services and Consulting segments.
The Risk and Insurance Services segment is expected to have received a boost from strong revenues reported across the Marsh and Guy Carpenter units. New business growth and robust retention rates might have favored Marsh’s performance in the first quarter. Guy Carpenter’s results are expected to have benefited from broad-based growth across geographies and specialties.
The Zacks Consensus Estimate for Marsh & McLennan’s revenues in the Risk and Insurance Services segment is pegged at $3.48 billion, which indicates a rise of 8.2% from the prior-year quarter’s reported figure. The consensus mark for Marsh and Guy Carpenter’s revenues stands at $2.5 billion and $953 million each, suggesting improvements of 9.8% and 6.5%, respectively, from the corresponding year-ago quarter’s reported numbers.
MMC’s Consulting segment’s performance is likely to have gained from solid results reported in its Mercer and Oliver Wyman units. The Zacks Consensus Estimate for the segment’s revenues is pegged at $2.01 billion, indicating 7.4% growth from the prior-year quarter’s tally.
The performance of the Mercer unit is likely to have been driven by a steady turnaround of the global economy, solid investment management growth and a rise in defined benefit.
The consensus estimate for Mercer’s revenues stands at $1.35 billion, suggesting a rise of 4.8% from the year-ago quarter’s reported number. Another Consulting segment named Oliver Wyman is likely to have received a boost from solid demand across most geographies and practices in the quarter under review.
The consensus mark for Oliver Wyman’s revenues is pegged at $670 million, which suggests an improvement of 14.5% from the prior-year quarter’s reported figure. However, higher expenses incurred for strategic hiring and constant investments to drive business might have been a drag.
What Our Quantitative Model Unveils
Our proven model doesn’t predict 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 an earnings beat, which is not the case here.
Earnings ESP: Marsh & McLennan has an Earnings ESP of -0.83%. This is because the Most Accurate Estimate is pegged at $2.12, lower than the Zacks Consensus Estimate of $2.13. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Some stocks worth considering from the finance space with a perfect mix of elements to surpass estimates in the upcoming quarterly releases are as follows:
Discover Financial Services (DFS - Free Report) is a digital banking and payment services company in the United States. DFS currently has an Earnings ESP of +1.75% and a Zacks Rank #3. ABCB is slated to release first-quarter results on Apr 27.
Arch Capital Group Ltd. (ACGL - Free Report) offers insurance, reinsurance and mortgage insurance worldwide. ACGL has an Earnings ESP of +2.99% and a Zacks Rank of 3 at present. ACGL is expected to report first-quarter results on Apr 27.
Sun Life Financial (SLF - Free Report) is well diversified by geography and product, providing protection and wealth management products and services. SLF has an Earnings ESP of +2.78% and a Zacks Rank of 3 at present. SLF is slated to release first-quarter results on May 11.
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Marsh & McLennan (MMC) to Post Q1 Earnings: What's in Store?
Marsh & McLennan Companies, Inc. (MMC - Free Report) is slated to report first-quarter 2022 earnings on Apr 21, before the market opens.
In fourth-quarter 2021, Marsh & McLennan reported adjusted earnings per share of $1.36, which outpaced the Zacks Consensus Estimate by 1.5%. The bottom line rose 14% year over year.
Results reflect growing revenues and robust contributions from its Risk and Insurance Services, and Consulting segments, partly offset by elevated costs.
Q1 Estimates
The Zacks Consensus Estimate for MMC’s first-quarter earnings per share is pegged at $2.13, which indicates an improvement of 7% from the prior-year quarter’s reported figure.
The consensus mark for revenues stands at $5.52 billion, suggesting growth of 8.7% from the year-ago quarter’s reported number.
Earnings Surprise History
Marsh & McLennan boasts an impressive earnings surprise history. Its bottom line beat estimates in each of the trailing four quarters, the average being 12.72%. This is depicted in the chart below:
Marsh & McLennan Companies, Inc. Price and EPS Surprise
Marsh & McLennan Companies, Inc. price-eps-surprise | Marsh & McLennan Companies, Inc. Quote
Factors to Note
Marsh & McLennan’s first-quarter performance is likely to have benefited from higher revenues and solid contributions from its Risk and Insurance Services and Consulting segments.
The Risk and Insurance Services segment is expected to have received a boost from strong revenues reported across the Marsh and Guy Carpenter units. New business growth and robust retention rates might have favored Marsh’s performance in the first quarter. Guy Carpenter’s results are expected to have benefited from broad-based growth across geographies and specialties.
The Zacks Consensus Estimate for Marsh & McLennan’s revenues in the Risk and Insurance Services segment is pegged at $3.48 billion, which indicates a rise of 8.2% from the prior-year quarter’s reported figure. The consensus mark for Marsh and Guy Carpenter’s revenues stands at $2.5 billion and $953 million each, suggesting improvements of 9.8% and 6.5%, respectively, from the corresponding year-ago quarter’s reported numbers.
MMC’s Consulting segment’s performance is likely to have gained from solid results reported in its Mercer and Oliver Wyman units. The Zacks Consensus Estimate for the segment’s revenues is pegged at $2.01 billion, indicating 7.4% growth from the prior-year quarter’s tally.
The performance of the Mercer unit is likely to have been driven by a steady turnaround of the global economy, solid investment management growth and a rise in defined benefit.
The consensus estimate for Mercer’s revenues stands at $1.35 billion, suggesting a rise of 4.8% from the year-ago quarter’s reported number.
Another Consulting segment named Oliver Wyman is likely to have received a boost from solid demand across most geographies and practices in the quarter under review.
The consensus mark for Oliver Wyman’s revenues is pegged at $670 million, which suggests an improvement of 14.5% from the prior-year quarter’s reported figure. However, higher expenses incurred for strategic hiring and constant investments to drive business might have been a drag.
What Our Quantitative Model Unveils
Our proven model doesn’t predict 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 an earnings beat, which is not the case here.
Earnings ESP: Marsh & McLennan has an Earnings ESP of -0.83%. This is because the Most Accurate Estimate is pegged at $2.12, lower than the Zacks Consensus Estimate of $2.13. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Marsh & McLennan carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Some stocks worth considering from the finance space with a perfect mix of elements to surpass estimates in the upcoming quarterly releases are as follows:
Discover Financial Services (DFS - Free Report) is a digital banking and payment services company in the United States. DFS currently has an Earnings ESP of +1.75% and a Zacks Rank #3. ABCB is slated to release first-quarter results on Apr 27.
Arch Capital Group Ltd. (ACGL - Free Report) offers insurance, reinsurance and mortgage insurance worldwide. ACGL has an Earnings ESP of +2.99% and a Zacks Rank of 3 at present. ACGL is expected to report first-quarter results on Apr 27.
Sun Life Financial (SLF - Free Report) is well diversified by geography and product, providing protection and wealth management products and services.
SLF has an Earnings ESP of +2.78% and a Zacks Rank of 3 at present. SLF is slated to release first-quarter results on May 11.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.