- Marsh McLennan’s adjusted earnings per share (EPS) for Q3 2024 reached $1.63, surpassing the previous year’s $1.57 and exceeding estimates of $1.62.
- The company reported revenue of $5.70 billion, marking a 5.9% year-over-year increase and slightly below the estimated $5.71 billion.
- Adjusted operating margin improved to 22.4% from 21.3% the previous year, outperforming the estimated 22.1%.
- Risk & Insurance Services segment posted an adjusted operating margin of 24.7%, up from 23.4% year-over-year, and above the expected 24.3%.
- The Consulting segment’s adjusted operating margin reached 21.7%, increasing from 20.8% year-over-year, exceeding the estimate of 21.2%.
- Adjusted operating income was $1.19 billion, a 12% increase year-over-year, beating the estimate of $1.18 billion.
- Risk & Insurance Services segment achieved an adjusted operating profit of $775 million, a 15% year-over-year increase, above the estimate of $762.9 million.
- The Consulting segment recorded an adjusted operating profit of $478 million, growing by 6.9% year-over-year, surpassing the forecasted $470 million.
- Underlying revenue grew by 5%, close to the estimated growth of 5.18%.
- Consulting’s underlying revenue increased by 4%, slightly below the predicted 4.62% growth.
- Risk & Insurance Services experienced a 6% increase in underlying revenue.
- Compensation expenses amounted to $3.44 billion, a 4.7% increase year-over-year, slightly higher than the estimated $3.41 billion.
- Analyst recommendations include 5 buy ratings, 13 hold ratings, and 3 sell ratings.
Marsh & Mclennan on Smartkarma
Analysts on Smartkarma, like Baptista Research, are closely monitoring Marsh & McLennan Companies for investors. In their report “Marsh & McLennan Companies: Can They Develop A Competitive Edge Through Analytics? – Major Drivers,” Marsh McLennan’s strong financial results for the second quarter of 2024 are highlighted. The report emphasizes the company’s growth potential as they achieved a 6% increase in underlying revenue growth, showcasing solid performance in Risk and Insurance Services (RIS) and Consulting.
Another report by Baptista Research, titled “Marsh & McLennan Companies: How Will The Increased Automation & Efficiency In Operations Impact Its Bottom-Line In 2024 & 2025? – Major Drivers,” focuses on the potential impacts of increased automation on the company’s bottom line. With positive aspects such as a 9% growth in underlying revenue and an 11% increase in adjusted operating income compared to the previous year, analysts note the company’s strong performance and improved operating margin. Marsh & McLennan also completed $300 million of share repurchases in the quarter, indicating confidence in the company’s future prospects.
A look at Marsh & Mclennan Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
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., a professional services firm specializing in risk, strategy, and human capital solutions, has a promising long-term outlook based on Smartkarma Smart Scores. With a solid Growth score of 4 and Momentum score of 4, the company shows strong potential for expansion and positive market performance ahead. Additionally, a moderate Dividend score of 3 indicates a steady dividend payout to investors, adding to its appeal.
Despite lower scores in Value and Resilience at 2 each, Marsh & McLennan’s overall outlook remains positive given its robust growth and momentum indicators. As a provider of global advice and transactional capabilities, the company is well positioned to navigate challenges and capitalize on opportunities in the professional services industry.
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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