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What's in Store for Marsh & McLennan's (MMC) Q1 Earnings?
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Marsh & McLennan Companies, Inc. (MMC - Free Report) will release first-quarter 2020 results on Apr 30, before the market opens.
In the last reported quarter, Marsh & McLennan delivered adjusted earnings per share of $1.19, surpassing the Zacks Consensus Estimate by 0.8% on the back of solid revenues. Moreover, the same increased 9.2% year over year.
Q1 Earnings & Revenue Expectations
The Zacks Consensus Estimate for Marsh & McLennan’s earnings of $1.56 per share in the first quarter implies a 2.6% increase from the prior-year reported number. Likewise, the consensus estimate for sales of $4.6 billion suggests a 14.3% improvement from the year-ago reported figure.
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 strength in both Marsh and Guy Carpenter. The consensus mark of $2.8 billion for Risk and Insurance Services segment’s revenues implies an upside of 17% from the year-earlier reported number. The consensus estimate for Marsh and Guy Carpenter revenues of $2 billion and $758 million indicates a hike of 20.5% and 14.3% from the respective year-earlier reported figures.
The Consulting segment is likely to have have also continued performing well in the first quarter owing to a solid performance at Mercer and Oliver Wyman Group units. The Zacks Consensus Estimate for revenues from the Consulting segment of $1.8 billion indicates a 7.9% rise from the prior-year reported figure. The consensus mark for revenues from Mercer and Oliver Wyman of $1.2 billion and $528 million implies an uptick of 10.6% and 2%, from the respective prior-year reported numbers.
Per the company’s last earnings call, management had confirmed that it will not repurchase shares in the first half of 2020.
On fourth-quarter earnings call, management had stated that it expected JLT’s employee benefits margins to be low in the first quarter. It also expected the Consulting margin to decline due to volatility.
In the to-be-reported quarter, the company is expected to have consistently deployed capital to add shareholder value, driven by its balance sheet strength.
However, an elevated expense level might have persistently weighed on its margins.
For the first quarter, the company anticipated to incur $130 million interest expenses, indicating a hike of 8.3% from the year-ago reported figure.
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 +0.59%. This is because the Most Accurate Estimate is pegged at $1.57, higher than the Zacks Consensus Estimate of $1.56. 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 (Hold), 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) is slated to report first-quarter earnings on May 4. It has a Zacks Rank of 3 and an Earnings ESP of +1.60%.
Assurant, Inc. (AIZ - Free Report) is set to report first-quarter earnings on May 5. The company is Zacks #3 Ranked and has an Earnings ESP of +4.28%.
Kemper Corporation (KMPR - Free Report) is slated to announced first-quarter earnings of May 4. The stock has an Earnings ESP of +12.57% and is a #2 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 +24.1% per year.
Image: Bigstock
What's in Store for Marsh & McLennan's (MMC) Q1 Earnings?
Marsh & McLennan Companies, Inc. (MMC - Free Report) will release first-quarter 2020 results on Apr 30, before the market opens.
In the last reported quarter, Marsh & McLennan delivered adjusted earnings per share of $1.19, surpassing the Zacks Consensus Estimate by 0.8% on the back of solid revenues. Moreover, the same increased 9.2% year over year.
Q1 Earnings & Revenue Expectations
The Zacks Consensus Estimate for Marsh & McLennan’s earnings of $1.56 per share in the first quarter implies a 2.6% increase from the prior-year reported number. Likewise, the consensus estimate for sales of $4.6 billion suggests a 14.3% improvement from the year-ago reported figure.
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 strength in both Marsh and Guy Carpenter. The consensus mark of $2.8 billion for Risk and Insurance Services segment’s revenues implies an upside of 17% from the year-earlier reported number. The consensus estimate for Marsh and Guy Carpenter revenues of $2 billion and $758 million indicates a hike of 20.5% and 14.3% from the respective year-earlier reported figures.
The Consulting segment is likely to have have also continued performing well in the first quarter owing to a solid performance at Mercer and Oliver Wyman Group units. The Zacks Consensus Estimate for revenues from the Consulting segment of $1.8 billion indicates a 7.9% rise from the prior-year reported figure. The consensus mark for revenues from Mercer and Oliver Wyman of $1.2 billion and $528 million implies an uptick of 10.6% and 2%, from the respective prior-year reported numbers.
Per the company’s last earnings call, management had confirmed that it will not repurchase shares in the first half of 2020.
On fourth-quarter earnings call, management had stated that it expected JLT’s employee benefits margins to be low in the first quarter. It also expected the Consulting margin to decline due to volatility.
In the to-be-reported quarter, the company is expected to have consistently deployed capital to add shareholder value, driven by its balance sheet strength.
However, an elevated expense level might have persistently weighed on its margins.
For the first quarter, the company anticipated to incur $130 million interest expenses, indicating a hike of 8.3% from the year-ago reported figure.
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 +0.59%. This is because the Most Accurate Estimate is pegged at $1.57, higher than the Zacks Consensus Estimate of $1.56. 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 (Hold), 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) is slated to report first-quarter earnings on May 4. It has a Zacks Rank of 3 and an Earnings ESP of +1.60%.
Assurant, Inc. (AIZ - Free Report) is set to report first-quarter earnings on May 5. The company is Zacks #3 Ranked and has an Earnings ESP of +4.28%.
Kemper Corporation (KMPR - Free Report) is slated to announced first-quarter earnings of May 4. The stock has an Earnings ESP of +12.57% and is a #2 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 +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>