New York-based Marsh & McLennan Companies, Inc. (MMC) is a professional services company that provides advice and solutions to clients in the areas of risk, strategy, and people. Valued at a market cap of $103.8 billion, the company operates through Risk and Insurance Services; and Consulting segments. It is expected to announce its fiscal Q4 earnings results on Thursday, Jan. 23.
Ahead of this event, analysts project the insurance company to report a profit of $1.86 per share, up 10.7% from $1.68 per share in the year-ago quarter. The company has a solid track record of consistently beating Wall Street's bottom-line estimates in the last four quarters. In Q3, MMC’s adjusted EPS of $1.63 outpaced the consensus estimates by 1.2%.
For fiscal 2024, analysts expect MMC to report an EPS of $8.69, up 8.8% from $7.99 in fiscal 2023. Furthermore, in fiscal 2025, EPS is expected to grow 8.2% year-over-year to $9.40.
Shares of Marsh & McLennan have gained 11.1% over the past 52 weeks, significantly lagging behind both the S&P 500 Index's ($SPX) 23.7% rise and the Financial Select Sector SPDR Fund’s (XLF) 27.7% return over the same time frame.
Shares of MMC fell marginally after its mixed Q3 earnings release on Oct. 17. The company’s adjusted earnings increased 3.8% year-over-year to $1.63 per share and outpaced the consensus estimates by 1.2%. On the other hand, its revenue of $5.7 billion, improved 5.9% from the year-ago quarter, but slightly fell short of the Wall Street estimates. Lower-than-expected revenue growth in its consulting segment and its Guy Carpenter unit within the Risk and Insurance Services segment, along with overall elevated expense levels, somewhat diminished the impact of its otherwise strong performance.
Wall Street analysts are cautious about Marsh & McLennan’s stock, with an overall "Hold" rating. Among 22 analysts covering the stock, four recommend "Strong Buy," two suggest "Moderate Buy," 14 indicate “Hold,” one recommends a “Moderate Sell,” and one suggests a “Strong Sell” rating.
The mean price target for MMC is $233.85, which indicates a modest 10.7% potential upside from the current levels.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
