Leading global insurer Marsh & McLennan Companies MMC is set to report first-quarter 2025 results on April 17, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $3.01 per share on revenues of $7.1 billion. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
The first-quarter earnings estimate has declined by a penny over the past week. The bottom-line projection indicates a year-over-year increase of 4.2%. The Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 9.4%.
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For the current year, the Zacks Consensus Estimate for Marsh & McLennan’s revenues is pegged at $26.86 billion, implying a rise of 9.8% year over year. Also, the consensus mark for current-year EPS is pegged at $9.56, calling for a jump of around 8.6% on a year-over-year basis.
MMC beat the consensus estimate for earnings in each of the last four quarters, with the average surprise being 3.1%.
Marsh & McLennan Companies, Inc. Price and EPS Surprise
Marsh & McLennan Companies, Inc. Price and EPS Surprise
Marsh & McLennan Companies, Inc. price-eps-surprise | Marsh & McLennan Companies, Inc. Quote
Q1 Earnings Whispers for MMC
Our proven model predicts an earnings beat for the company this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
MMC has an Earnings ESP of +0.28% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
What’s Shaping MMC’s Q1 Results?
The performance of Risk and Insurance Services in the first quarter is likely to have benefited from new business growth and solid retention rates. Additionally, strong growth in various regions, including Latin America, is expected to contribute to its results.
The Zacks Consensus Estimate for Marsh’s revenues indicates 14.7% growth from $3 billion a year ago, whereas our model predicts a 12.2% increase. We expect the unit to witness 6.1% organic revenue growth in the quarter under discussion. Additionally, strong growth in the EMEA and the Asia-Pacific regions is expected to have aided revenues in the quarter under review.
The consensus mark for Guy Carpenter’s first-quarter revenues suggests 6.1% growth from the year-ago level, while our model estimate indicates a 5% increase.
The Zacks Consensus Estimate for Mercer’s revenues calls for growth of 4.9% from $1.4 billion recorded a year ago, while our model estimate suggests a 3.3% increase.
The consensus estimate for first-quarter revenues in the Consulting segment suggests a 4.9% increase, whereas our model foresees a 6.4% rise. The unit is likely to have been supported by sustained demand for advisory services and project-related activities during the quarter under review.
The factors mentioned above are expected to have contributed to the company's year-over-year growth, positioning it for an earnings beat. However, the upsides are likely to have been partially offset by increased expenses from significant investments in priority areas for long-term growth, coupled with an uptick in certain discretionary and other costs.
Our model suggests that the total operating expenses in the first quarter may increase 5.6%, attributed to increased costs related to higher compensation and benefits and other operating costs.
Other Stocks That Warrant a Look
Here are some other companies worth considering from the broader Finance space, as our model shows that these, too, have the right combination of elements to beat on earnings this time:
Brown & Brown, Inc. BRO has an Earnings ESP of +0.77% and is a Zacks #2 Ranked player.
The Zacks Consensus Estimate for Brown & Brown’s bottom line for the to-be-reported quarter is pegged at $1.30 per share, indicating 14% year-over-year growth. It has remained stable over the past week. The consensus estimate for Brown & Brown’s revenues is pegged at $1.4 billion.
MGIC Investment Corp MTG has an Earnings ESP of +7.04% and is a Zacks #2 Ranked player.
The Zacks Consensus Estimate for MGIC Investment’s bottom line for the to-be-reported quarter is pegged at 66 cents per share, indicating 1.5% year-over-year growth. It has remained stable over the past week. The consensus estimate for MGIC Investment’s revenues is pegged at $310 million.
American International Group, Inc. AIG has an Earnings ESP of +2.59% and a Zacks Rank of 3.
The Zacks Consensus Estimate for American International’s earnings for the to-be-reported quarter is pegged at $1.05 per share. The consensus estimate for revenues is pegged at $6.79 billion. American International beat earnings estimates in three of the past four quarters and missed once, with the average surprise being 0.53%.
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