MMC Earnings Prediction
The chart below shows how MMC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MMC sees a -1.59% change in stock price 10 days leading up to the earnings, and a +0.81% change 10 days following the report. On the earnings day itself, the stock moves by +0.21%. This data can give you a slight idea of what to expect for the next quarter's release.
MMC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
6.07B
9.24%
6.49%
Gross Margin
--
--
--
Operating Margin
21.66%
-10.50%
4.39%
Net Margin
13.20%
-4.14%
0.00%
EPS
1.59
4.61%
5.30%
No Data Available
MMC Earnings Analysis
Marsh & McLennan Companies Inc Corporation (MMC.N) Earnings Conference Call
Positive
Strong Revenue Growth: Total revenue grew 8% to $24.5 billion, with 7% underlying revenue growth, marking the best growth stretch in over two decades.
Operating Income Performance: Adjusted operating income increased by 11% to $6.2 billion, building on a 17% growth in 2023, demonstrating strong operational performance.
Operating Margin Expansion: The adjusted operating margin expanded by 80 basis points, achieving the 17th consecutive year of margin expansion, reflecting effective cost management.
Acquisition Investment Surge: A record $9.4 billion was invested in acquisitions, including the significant $7.75 billion acquisition of McGriff, enhancing market presence and capabilities.
Dividend Increase and Buybacks: The quarterly dividend was raised by 15%, and $900 million was allocated for share repurchases, underscoring a commitment to returning capital to shareholders.
Negative
California Wildfire Insurance Losses: Insured losses from the California wildfires are expected to exceed $30 billion, marking a significant financial impact on the insurance industry and highlighting the increasing frequency of natural disasters.
Global Insurance Market Decline: The Marsh Global Insurance Market Index decreased by 2% in Q4, indicating a decline in market conditions, with global property rates down 3% and casualty rates facing pressure, particularly in the U.S. where rates were flat.
Fiduciary Income Decline: Fiduciary income declined by $26 million from Q3 to Q4, reflecting lower interest rates, and is expected to remain around $100 million in Q1 2025, indicating a continued headwind for revenue.
Consulting Segment Margin Decline: Adjusted operating margin in the consulting segment decreased to 20.7% from 21.3% year-over-year, reflecting challenges in maintaining profitability amid seasonality and acquisition impacts.
Rising Interest Expense: Interest expense increased to $231 million in Q4 from $51 million in the same quarter last year, driven by higher debt levels and bridge financing fees related to the McGriff acquisition, indicating rising financial costs.
MMC FAQs
How does MMC typically perform around its earnings report dates?
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MMC Earning Call Sentiment
Earnings call transcript: Marsh McLennan Q4 2024 beats EPS forecast
MMC.N
1.32%Positive
The earnings call reflects strong financial performance with revenue, operating income, and EPS growth, alongside margin expansion. The McGriff acquisition is expected to be accretive in the long term, and there's a significant increase in shareholder returns through dividends and repurchases. Despite some cautious outlook due to macroeconomic uncertainties, the overall sentiment is positive with optimistic guidance and strategic investments. The Q&A section highlights broad-based growth and a positive outlook for the health business. These factors suggest a likely positive stock price movement in the short term.
