Professional services firm Marsh & McLennan (NYSE: MMC) will be reporting earnings this Thursday before the bell. Here’s what investors should know.
Marsh & McLennan met analysts’ revenue expectations last quarter, reporting revenues of $6.35 billion, up 11.5% year on year. It was a mixed quarter for the company, with revenue in line with analysts’ estimates but a miss of analysts’ EPS estimates.
Is Marsh & McLennan a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Marsh & McLennan’s revenue to grow 7.9% year on year to $6.55 billion, slowing from the 9.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Marsh & McLennan has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Marsh & McLennan’s peers in the professional services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Brown & Brown delivered year-on-year revenue growth of 36%, missing analysts’ expectations by 2.2%, and Booz Allen Hamilton reported a revenue decline of 10.2%, falling short of estimates by 3.8%. Brown & Brown traded down 8.4% following the results while Booz Allen Hamilton was also down 1.9%.
Read our full analysis of Brown & Brown’s results here and Booz Allen Hamilton’s results here.
There has been positive sentiment among investors in the professional services segment, with share prices up 2.2% on average over the last month. Marsh & McLennan is down 3.5% during the same time.
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