- Adjusted EPS: $2.41, up from $2.20 year-over-year, beating the estimate of $2.39.
- Revenue: $6.22 billion, a 5.9% increase year-over-year, but below the estimate of $6.31 billion.
- Adjusted Operating Margin: 29%, up from 27.7% year-over-year, surpassing the estimate of 28.3%.
- Risk & Insurance Services Adjusted Operating Margin: 35.3%, up from 34.2% year-over-year, slightly higher than the estimate of 34.6%.
- Consulting Segment Adjusted Operating Margin: 19.8%, up from 19.2% year-over-year, but below the estimate of 20.2%.
- Adjusted Operating Income: $1.72 billion, an 11% increase year-over-year, ahead of the estimate of $1.7 billion.
- Risk & Insurance Services Segment Adjusted Operating Profit: $1.34 billion, a 12% increase year-over-year, surpassing the estimate of $1.31 billion.
- Consulting Segment Adjusted Operating Profit: $426 million, a 5.7% increase year-over-year, but below the estimate of $460.1 million.
- Underlying Revenue Growth: 6%, slightly below the estimate of 6.29%.
- Consulting Underlying Revenue Growth: 4%, below the estimate of 5.59%.
- Risk & Insurance Services Underlying Revenue Growth: 7%, above the estimate of 6.65%.
- Compensation Expenses: $3.45 billion, a 3.5% increase year-over-year, below the estimate of $3.49 billion.
- CEO Comments: John Doyle, President and CEO, stated the company achieved strong results with 6% underlying revenue growth, 10% adjusted EPS growth, and a 130 basis points margin expansion.
- Analyst Recommendations: 6 buys, 14 holds, 3 sells.
Marsh & Mclennan on Smartkarma
Analysts on Smartkarma are providing insightful coverage on Marsh & McLennan Companies. Baptista Research highlights the company’s Q1 2024 financial results, showcasing a neutral perspective with positive aspects such as strong revenue growth and expanded operating margin. Value Investors Club notes Marsh & McLennan as the largest global insurance broker, with a fair valuation and potential 5-year returns of 12% IRR. Baptista Research also emphasizes the firm’s client-centric approach and recent acquisitions, showcasing strong organic and inorganic growth strategies.
Overall, analyst sentiment leans bullish on Marsh & McLennan, with focus on operational efficiency, growth drivers, and market opportunities. These reports provide investors with valuable insights into the company’s financial performance, strategic initiatives, and growth prospects in the insurance industry.
A look at Marsh & Mclennan Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Marsh & McLennan Companies, Inc. is poised to see strong long-term growth and momentum according to Smartkarma Smart Scores. With a Growth score of 4 and Momentum score of 4, the company is positioned to capitalize on future opportunities and sustain its positive performance. This suggests that Marsh & McLennan is likely to continue expanding and attracting investors’ attention in the foreseeable future.
Despite facing challenges in terms of Value, Dividend, and Resilience with scores of 2 each, Marsh & McLennan’s overall outlook remains optimistic due to its robust growth and momentum metrics. The company, a professional services firm specializing in risk, strategy, and human capital solutions, continues to provide valuable advice and transactional capabilities to clients globally, reflecting its strong market presence and potential for sustained success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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