Can Marsh & McLennan (MMC) Q1 Earnings Beat On Revenues?
Zacks Investment Research | Apr 23, 2018 11:19PM ET
Marsh & McLennan Companies, Inc. (NYSE:MMC) will release first-quarter 2018 results on Apr 26, before the market opens. Last quarter, the company delivered a positive earnings surprise of 10.5%.
Let’s see, how things are shaping up prior to this announcement.
The company’s first-quarter results are expected to benefit from increased revenues at both its operating segments of Risk and Insurance Services as well as Consulting. The Zacks Consensus Estimate for net operating revenues is pegged at $3.8 billion, reflecting 8.5% year-over-year growth.
The company’s Risk and Insurance Services segment has been growing over the past several quarters on the back of accretive acquisitions and the trend is expected to continue in the to-be-reported quarter. The Zacks Consensus Estimate for this segmental revenues is pegged at $2.2 billion, up 10% year over year.
Also, the company’s Consulting segment has been significantly contributing to the revenue base, riding on both organic and inorganic growth efforts. The consensus mark for revenues from this segment is $1.6 billion, representing 6.7% increase year over year.
The company is expanding its footprint in the regions of Latin America, Asia, the Middle East and South Africa, which remain underexplored with high-growth potential. Performance from these regions is likely to boost overall results. Additionally, the company is widening its horizon into new businesses, which are expected to drive the top line.
Earnings Whispers
Our proven model does not conclusively show that Marsh & McLennan is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Zacks Investment Research
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