What's In The Cards For Marsh & McLennan (MMC) Q1 Earnings?
Zacks Investment Research | Apr 21, 2019 10:37PM ET
Marsh & McLennan Companies, Inc. (NYSE:MMC) will release first -quarter 2019 results on Apr 25, before the market opens. In the last reported quarter, the company delivered a positive earnings surprise of 5.8%, backed by solid performances by its Risk and Insurance plus Consulting segments.
Let’s see, how things are shaping up prior to this announcement.
Aided by its solid segments, revenues of the company are likely to have witnessed an upside in the to-be-reported quarter. The Risk and Insurance Services line is expected to perform well owing to a strong uptick in Marsh and Guy Carpenter division. The consensus mark for revenues from this segment stands at $2.5 billion, up 4.7% from the year-ago reported number. The company’s constant efforts in effecting alliances and acquisitions poise the segment well for growth.
The Consulting segment has also been favoring the company’s revenue base over the last few quarters and will possibly maintain this trend in the first quarter of 2019 as well. The consensus estimate for revenues from this segment stands at $1.7 billion, implying 4.9% growth from the year-earlier reported figure.
The Zacks Consensus Estimate for total revenues is pegged at $4.2 billion, suggesting 5.1% growth from the year-ago reported number. The same for first-quarter earnings is pegged at $1.46, indicating 5.8% growth from the prior-year reported figure, supported by higher revenues.
However, adverse foreign exchange volatility might be a drag on the company’s first-quarter earnings.
The company could have suffered high debts due to certain buyouts, which worsen its financial risk. Expenses too probably have escalated in the quarter under review due to increased compensation and benefits, which might weigh on its margins.
What the Quantitative Model States
Our proven model does not conclusively show that Marsh & McLennan is likely to beat on earnings this reporting cycle. This is because the stock does not have the right combination of a positive Original post
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