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Marsh & McLennan Gears Up to Report Q3 Earnings: Key Estimates to Note

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Key Takeaways

  • MMC's Q3 earnings are estimated at $1.80 per share on revenues of $6.3 billion.
  • Revenue growth is expected from strong Risk and Insurance Services and Consulting segments.
  • Higher operating and interest expenses may partially offset MMC's solid top-line performance.

Marsh & McLennan Companies, Inc. (MMC - Free Report) is set to report third-quarter 2025 results on Oct. 16, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $1.80 per share on revenues of $6.3 billion.

The third-quarter earnings estimate has declined by a penny over the past 60 days. The bottom-line projection indicates a year-over-year increase of 10.4%. The Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 11.1%.

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For the current year, the Zacks Consensus Estimate for Marsh & McLennan’s revenues is pegged at $27 billion, implying a rise of 10.4% year over year. Also, the consensus mark for current-year EPS is pegged at $9.57, calling for a jump of around 8.8% on a year-over-year basis.

MMC beat the consensus estimate for earnings in each of the last four quarters, with the average surprise being 2.9%.

Earnings Whispers for MMC

Our proven model does not predict an earnings beat for Marsh & McLennan this time. 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.

MMC has an Earnings ESP of -0.74% and currently carries a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

What’s Shaping MMC’s Q3 Results?

Marsh & McLennan’s third-quarter revenue growth is expected to be driven by strong performances across its Risk and Insurance services and Consulting segments. The Risk and Insurance Services division is likely to have benefited from its Marsh and Guy Carpenter subdivisions. Additionally, strong growth in various regions, including Latin America, is expected to contribute to its results.

The Zacks Consensus Estimate for revenues from the Risk and Insurance Services segment indicates a rise of 14.9% from the prior-year quarter, whereas our estimate suggests a 14.8% jump. The Zacks Consensus Estimate for Marsh’s revenues indicates 17.8% growth from $2.9 billion a year ago, whereas our model predicts a 17.9% increase. We expect the unit to witness 5% organic revenue growth in the quarter under discussion. The consensus mark for Guy Carpenter’s third-quarter revenues suggests 5.2% growth from the year-ago level, while our model estimate indicates a 5% increase.

The Zacks Consensus Estimate for the overall Consulting segment’s revenues indicates growth of 4.9% from the prior-year quarter’s $2.3 billion, whereas our estimate suggests a 4.8% rise. Also, the consensus mark for the segment’s adjusted operating income is pegged at $498.2 million, suggesting 4.2% growth from the year-ago quarter’s reported number.

The factors mentioned above are expected to have contributed to the company's year-over-year growth, positioning it for an earnings beat. However, the upsides are likely to have been partially offset by increased expenses from significant investments in priority areas for long-term growth, coupled with an uptick in certain discretionary and other costs. Our model suggests that the total operating expenses in the third quarter may increase 9.5%, attributed to increased costs related to higher compensation and benefits and other operating costs. Also, we expect interest expense to increase 55.9% year over year in the quarter under discussion.

Stocks That Warrant a Look

Here are some companies worth considering from the broader Finance space, as our model shows that these have the right combination of elements to beat on earnings this time:

Aon plc (AON - Free Report) currently has an Earnings ESP of +0.45% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Aon’s bottom line for the to-be-reported quarter is pegged at $2.89 per share, indicating 6.3% year-over-year growth. It has remained stable over the past 60 days. The consensus estimate for Aon’s revenues is pegged at $3.9 billion.

Evercore Inc. (EVR - Free Report) has an Earnings ESP of +12.18% and carries a Zacks Rank #3 at present.

The Zacks Consensus Estimate for Evercore’s bottom line for the to-be-reported quarter is pegged at $2.87 per share, indicating 40.7% year-over-year growth. It beat earnings estimates in each of the past four quarters, with the average surprise being 44.1%. The consensus estimate for Evercore’s revenues is pegged at $899.3 million.

American International Group, Inc. (AIG - Free Report) presently has an Earnings ESP of +1.98% and a Zacks Rank of 3.

The Zacks Consensus Estimate for American International’s earnings for the to-be-reported quarter is pegged at $1.57 per share. The consensus estimate for revenues is pegged at $6.9 billion. American International beat earnings estimates in each of the past four quarters, with the average surprise being 9.5%.

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