Marsh & Mclennan Companies Earnings: Profit Rises for Third Straight Quarter

S&P 500 (NYSE:SPY) component Marsh & Mclennan Companies Inc. (NYSE:MMC) reported net income above Wall Street’s expectations for the second 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 Inc. Earnings Cheat Sheet

Results: Net income for the insurance brokerage rose to $329 million (59 cents per share) vs. $282 million (50 cents per share) in the same quarter a year earlier. This marks a rise of 16.7% from the year-earlier quarter.

Revenue: Rose 3.3% to $3.03 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Marsh & Mclennan Companies Inc. reported adjusted net income of 61 cents per share. By that measure, the company beat the mean estimate of 58 cents per share. Analysts were expecting revenue of $3.04 billion.

Quoting Management: Brian Duperreault, President and CEO, said: “Our outstanding second quarter results successfully built on our strong first quarter. We produced revenue growth in each of our Operating Companies as well as excellent growth in operating income in both Risk and Insurance Services and Consulting, with meaningful margin improvement.

Key Stats:

The company has now seen its net income increase for three consecutive quarters. In the first quarter, net income rose 6.8% and in the fourth quarter of the last fiscal year, the figure rose 26.1%.

Revenue has increased for four quarters in a row. Revenue increased 5.8% to $3.05 billion in the first quarter. The figure rose 4.4% in the fourth quarter of the last fiscal year from the year earlier and climbed 11.2% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now beaten analyst estimates for three quarters in a row. It beat the mark by 2 cents in the first quarter and by one cent in the fourth quarter of the last fiscal year.

Looking Forward: The average estimate for the third quarter is steady at 39 cents a share. Over the past three months, the average estimate for the fiscal year has climbed from $2.14 per to share to $2.15.

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

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