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Valued at a market cap of $109.8 billion, Marsh & McLennan Companies, Inc. (MMC) is a professional services company that provides risk and insurance, risk consulting, and employee benefits consulting services. The New York based company is expected to announce its fiscal Q3 earnings results before the market opens on Thursday, Oct. 17.
Ahead of this event, analysts expect the insurance company to report a profit of $1.61 per share, up 2.6% from $1.57 per share in the year-ago quarter. The company has consistently surpassed Wall Street's bottom-line estimates in the last four quarters.
In Q2, the company reported an EPS of $2.41, marginally surpassing the consensus estimates. The outperformance was primarily driven by a stronger-than-expected growth in its risk and insurance services segment’s revenue and adjusted operating income.
For fiscal 2024, analysts expect MMC to report an EPS of $8.74, up 9.4% from $7.99 in fiscal 2023.
Shares of Marsh & McLennan have gained 17.5% on a YTD basis, lagging behind both the S&P 500 Index's ($SPX) 19.9% rise and the Financial Select Sector SPDR Fund’s (XLF) 19.9% returns over the same period.
On Jul. 18, shares of MMC fell 1.5% following its Q2 earnings release as its revenue of $6.22 billion fell short of Wall Street forecasts of $6.28 billion. This was primarily driven by sluggish growth in its consulting segment.
Analysts' consensus view on Marsh & McLennan’s stock is cautious, with a "Hold" rating overall. Among 22 analysts covering the stock, four recommend a "Strong Buy," one suggests a "Moderate Buy," 15 suggest "Hold," one indicates “Moderate Sell,” and one recommends a “Strong Sell” rating.
This configuration is slightly more bullish than three months ago, with three analysts suggesting a "Strong Buy." The average analyst price target for MMC is $223.75, indicating a marginal upside from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
