Marsh & Mclennan Companies Inc. Earnings: Keeping the Profitability Streak Alive

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S&P 500 (NYSE:SPY) component Marsh & Mclennan Companies Inc. (NYSE:MMC) reported its results for the fourth quarter. Marsh & McLennan is a global professional services firm providing advice and solutions in the areas of risk, strategy, and human capital.

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Marsh & Mclennan Companies Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the insurance broker rose to $256 million (47 cents per share) vs. $203 million (37 cents per share) in the same quarter a year earlier. This marks a rise of 26.1% from the year earlier quarter.

Revenue: Rose 4.4% to $2.91 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: Marsh & Mclennan Companies Inc. reported adjusted net income of 46 cents per share. By that measure, the company beat the mean estimate of 45 cents per share. Analysts were expecting revenue of $2.96 billion.

Quoting Management: Brian Duperreault, President and CEO, said: “We are very pleased with our Company’s performance, both for the fourth quarter, and for the entire year. For the second consecutive year, we achieved double-digit growth in adjusted operating income. This growth was broad-based, with both our Risk and Insurance Services and Consulting segments generating double-digit growth in adjusted operating income.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 11.2% to $2.81 billion in the third quarter. The figure rose 12.4% in the second quarter from the year earlier and climbed 3.2% in the first quarter from the year-ago quarter.

The company beat estimates last quarter after being in line with expectations in the third quarter with net income of 24 cents per share.

Net income has increased more than twofold year over year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed 782.6% from the year earlier quarter.

Looking Forward: For the next quarter, analysts are growing pessimistic about the company’s expected results. The average estimate for the first quarter of the next fiscal year is 60 cents per share, dropping from 61 cents a month ago. The average estimate for the fiscal year is $1.75 per share, falling from $1.76 thirty days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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