Insights Ahead: Marsh & McLennan's Quarterly Earnings

Marsh & McLennan (NYSE:MMC) is set to give its latest quarterly earnings report on Thursday, 2024-10-17. Here's what investors need to know before the announcement.

Analysts estimate that Marsh & McLennan will report an earnings per share (EPS) of $1.61.

The announcement from Marsh & McLennan is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Performance in Previous Earnings

Last quarter the company beat EPS by $0.01, which was followed by a 0.31% drop in the share price the next day.

Here's a look at Marsh & McLennan's past performance and the resulting price change:

Quarter	Q2 2024	Q1 2024	Q4 2023	Q3 2023
EPS Estimate	2.40	2.80	1.63	1.39
EPS Actual	2.41	2.89	1.68	1.57
Price Change %	-0.0%	0.0%	1.0%	-2.0%

Tracking Marsh & McLennan's Stock Performance

Shares of Marsh & McLennan were trading at $226.06 as of October 15. Over the last 52-week period, shares are up 18.7%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Opinions on Marsh & McLennan

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Marsh & McLennan.

Analysts have given Marsh & McLennan a total of 7 ratings, with the consensus rating being Neutral. The average one-year price target is $231.29, indicating a potential 2.31% upside.

Comparing Ratings Among Industry Peers

The below comparison of the analyst ratings and average 1-year price targets of Aon, Arthur J. Gallagher and Brown & Brown, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• For Aon, analysts project an Neutral trajectory, with an average 1-year price target of $351.91, indicating a potential 55.67% upside.
• Arthur J. Gallagher received a Neutral consensus from analysts, with an average 1-year price target of $289.4, implying a potential 28.02% upside.
• The consensus outlook from analysts is an Neutral trajectory for Brown & Brown, with an average 1-year price target of $108.45, indicating a potential 52.03% downside.

Summary of Peers Analysis

The peer analysis summary provides a snapshot of key metrics for Aon, Arthur J. Gallagher and Brown & Brown, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Company	Consensus	Revenue Growth	Gross Profit	Return on Equity
Marsh & McLennan	Neutral	5.87%	$2.77B	8.72%
Aon	Neutral	18.35%	$1.63B	18.30%
Arthur J. Gallagher	Neutral	13.66%	$1.12B	2.48%
Brown & Brown	Neutral	11.39%	$569M	4.30%

Key Takeaway:

Marsh & McLennan ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.

Discovering Marsh & McLennan: A Closer Look

Marsh McLennan is a professional services firm that provides advice and solutions in the areas of risk, strategy, and human capital. The company operates through two main segments: risk and insurance services and consulting. In risk and insurance services, the firm offers services via Marsh (an insurance broker) and Guy Carpenter (a risk and reinsurance specialist). The consulting division comprises Mercer (a provider of human resource services) and Oliver Wyman (a management and economic consultancy). About half of its revenue is generated outside the US.

Key Indicators: Marsh & McLennan's Financial Health

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: Over the 3 months period, Marsh & McLennan showcased positive performance, achieving a revenue growth rate of 5.87% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.

Net Margin: Marsh & McLennan's net margin is impressive, surpassing industry averages. With a net margin of 18.08%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 8.72%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Marsh & McLennan's ROA excels beyond industry benchmarks, reaching 2.34%. This signifies efficient management of assets and strong financial health.

Debt Management: Marsh & McLennan's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.15.

To track all earnings releases for Marsh & McLennan visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.