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.
Will Revenue Growth Aid Marsh & McLennan (MMC) Q3 Earnings?
Read MoreHide Full Article
Marsh & McLennan Companies, Inc. (MMC - Free Report) third-quarter results, scheduled for Oct 26, are expected to benefit from increased revenues at both its operating segments, namely Risk and Insurance Services and Consulting.
Revenues in the company’s Risk and Insurance Services segment, which contributes nearly 55% to total revenues, have been growing for the past several quarters and we expect the trend to continue in the quarter. Top-line growth will be aided by an increase in underlying revenues along with accretion from numerous acquisitions made during the course of the past many years. The Zacks Consensus Estimate for revenues for the segment is $1.7 billion, up 6.3% year over year.
Also, higher contribution is expected from Consulting. A combination of organic and inorganic growth measures are likely to drive revenues in this segment. The Zacks Consensus Estimate for revenues for the segment is $1.6 billion, up 5.8% year over year.
The company is expanding in underpenetrated regions such as Latin America, Asia, the Middle East and South Africa, which are perceived as high growth areas. Performance from these regions is likely to aid overall results.
Along with pushing into attractive geographical regions, the company is expanding in new businesses which should drive revenues. These include Marsh’s build out of MMA and its UK SME strategy, the emergence of cyber, flood and mortgage practices at Marsh and Guy Carpenter, investments at Mercer in Workday implementation capabilities, global health and benefits technology and the Mercer Marketplace Health Exchange, investments in Oliver Wyman and their digital technology and analytics platform, and continued pursuit of high-growth areas, including healthcare and the public sector.
Here is what our quantitative model predicts:
Our proven model shows that Marsh & McLennan does not have the right combination of the two key ingredients, of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better, to beat earnings estimates.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is -0.53%. This is because the Most Accurate estimate of 77 cents per share is a penny below the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Though Marsh & McLennan carries a Zacks Rank #2 (Buy), which increases the predictive power of ESP, its negative ESP makes surprise prediction difficult.
We caution against Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Marsh & McLennan Companies, Inc. Price and EPS Surprise
Anthem Inc. has an Earnings ESP of +1.55% and a Zacks Rank of 3. The company is scheduled to report third-quarter earnings results on Oct 25.
Aflac Inc. (AFL - Free Report) has an Earnings ESP of +1.31%. This Zacks #3 Ranked company is scheduled to report third-quarter earnings results on Oct 25.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Will Revenue Growth Aid Marsh & McLennan (MMC) Q3 Earnings?
Marsh & McLennan Companies, Inc. (MMC - Free Report) third-quarter results, scheduled for Oct 26, are expected to benefit from increased revenues at both its operating segments, namely Risk and Insurance Services and Consulting.
Revenues in the company’s Risk and Insurance Services segment, which contributes nearly 55% to total revenues, have been growing for the past several quarters and we expect the trend to continue in the quarter. Top-line growth will be aided by an increase in underlying revenues along with accretion from numerous acquisitions made during the course of the past many years. The Zacks Consensus Estimate for revenues for the segment is $1.7 billion, up 6.3% year over year.
Also, higher contribution is expected from Consulting. A combination of organic and inorganic growth measures are likely to drive revenues in this segment. The Zacks Consensus Estimate for revenues for the segment is $1.6 billion, up 5.8% year over year.
The company is expanding in underpenetrated regions such as Latin America, Asia, the Middle East and South Africa, which are perceived as high growth areas. Performance from these regions is likely to aid overall results.
Along with pushing into attractive geographical regions, the company is expanding in new businesses which should drive revenues. These include Marsh’s build out of MMA and its UK SME strategy, the emergence of cyber, flood and mortgage practices at Marsh and Guy Carpenter, investments at Mercer in Workday implementation capabilities, global health and benefits technology and the Mercer Marketplace Health Exchange, investments in Oliver Wyman and their digital technology and analytics platform, and continued pursuit of high-growth areas, including healthcare and the public sector.
Here is what our quantitative model predicts:
Our proven model shows that Marsh & McLennan does not have the right combination of the two key ingredients, of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better, to beat earnings estimates.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is -0.53%. This is because the Most Accurate estimate of 77 cents per share is a penny below the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Though Marsh & McLennan carries a Zacks Rank #2 (Buy), which increases the predictive power of ESP, its negative ESP makes surprise prediction difficult.
We caution against Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Marsh & McLennan Companies, Inc. Price and EPS Surprise
Marsh & McLennan Companies, Inc. Price and EPS Surprise | Marsh & McLennan Companies, Inc. Quote
Other Stocks
Here are some companies worth considering as our model shows that these possess the right combination of elements to beat estimates this quarter:
Amerisafe Inc. (AMSF - Free Report) will report third-quarter 2017 earnings results on Oct 25. The company has an Earnings ESP of +3.04% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Anthem Inc. has an Earnings ESP of +1.55% and a Zacks Rank of 3. The company is scheduled to report third-quarter earnings results on Oct 25.
Aflac Inc. (AFL - Free Report) has an Earnings ESP of +1.31%. This Zacks #3 Ranked company is scheduled to report third-quarter earnings results on Oct 25.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>