Marsh & McLennan (MMC) Q1 Earnings Top Estimates, Up Y/Y
Zacks Investment Research | Apr 26, 2018 12:19AM ET
Marsh & McLennan Companies (NYSE:MMC), Inc. (NYSE:C) reported first-quarter 2018 adjusted earnings per share of $1.38, beating the Zacks Consensus Estimate by 6.1%. Also, the bottom line improved 28% year over year.
In the quarter under review, Marsh & McLennan’s consolidated revenues were $4 billion, up 4% on an underlying basis. Moreover, the top line outpaced the Zacks Consensus Estimate by 4.3%.
Total operating expenses of $3,092 million in the first quarter were up 12.3% year over year.
Quarterly Segment Results
Risk and Insurance Services
Revenues at the Risk and Insurance Services segment were $2.3 billion, up 3% on an underlying basis. Adjusted operating income also grew 30% to $723 million from the prior-year quarter.
Marsh, a unit within this segment, generated revenues of $1.7 billion, up 2% on an underlying basis. In U.S./Canada, underlying revenues rose 3%. Underlying revenue growth remained flat from international operations, reflecting underlying growth of 4% in Asia Pacific and 6% in Latin America. This was partially offset by a decline of 2% in EMEA.
Another unit under this segment — Guy Carpenter — displayed revenue growth of 7% on an underlying basis to $637 million.
Consulting
The Consulting segment's revenues increased 5% on an underlying basis to $1.7 billion. Additionally, adjusted operating income increased 8% year over year to $248 million.
A unit within this segment — Mercer — reported revenues of $1.2 billion, up 5% on an underlying basis. Wealth with revenues of $565 million, grew 3% on an underlying basis.
Another unit, Oliver Wyman Group, posted revenues of $497 million, up 6% on an underlying basis.
Marsh & McLennan Companies, Inc. Price, Consensus and EPS Surprise
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