Is A Beat In Store For Marsh & McLennan's (MMC) Q3 Earnings?
Zacks Investment Research | Oct 24, 2019 11:39PM ET
Marsh & McLennan Companies, Inc. (NYSE:MMC) will release third-quarter 2019 results on Oct 29, before the market opens.
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is pegged at 69 cents, suggesting a 11.5% decline from the year-ago reported figure.
In the last reported quarter, Marsh & McLennan delivered adjusted earnings per share of $1.18, surpassing the Zacks Consensus Estimate by 4.4% on the back of higher revenues. Also, the bottom line improved 7.3% year over year.
Let’s see, how things are shaping up prior to this announcement.
The company’s overall results in the third quarter of 2019 are likely to bear the brunt of lower adjusted operating income in the Risk & Insurance Services business due to weak performance by its Guy Carpenter segment. The consensus mark for the adjusted operating income from the business indicates a decline of 8.5% from the year-earlier reported number.
Moreover, its debt-to-equity ratio jumped from 70.2% in 2017 to 72.7% in 2018 and 137.5% in the first half of 2019. The same is likely to have continued in the third quarter of 2019.
However, the downside might have been partly offset by the company’s improving revenues in the third quarter of 2019. The Zacks Consensus Estimate for total revenues is pegged at $4 billion, hinting at 14.2% improvement from the prior-year reported number.
The Consulting business has been favoring the company’s revenue base over the last few quarters on the back of its Mercer and Oliver Wyman Group units, a trend that most likely continued in the third quarter. The consensus estimate for revenues from this segment implies 7.9% growth from the year-earlier reported figure.
The company is expected to have deployed its capital to add shareholder value on the back of its impressive balance sheet.
What the Quantitative Model Predicts
Our proven model predicts an earnings beat for Marsh & McLennan this reporting cycle. The combination of a positive Original post
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