LONDON, UK / ACCESSWIRE / February 21, 2018 / Active-Investors.com has just released a free earnings report on Marsh & McLennan Cos., Inc. (NYSE: MMC). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=MMC. Marsh & McLennan reported its fourth quarter fiscal 2017 operating and financial results on February 01, 2018. The global professional services firm providing strategy, risk and people solutions outperformed top- and bottom-line expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Marsh & McLennan most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
Marsh & McLennan's consolidated revenue in Q4 2017 was $3.69 billion, reflecting an increase of 10% compared to Q4 2016 revenue of $3.36 billion, or 4% on an underlying basis. The Company's reported numbers exceeded analysts' estimates of $3.58 billion.
During Q4 2017, Marsh & McLennan's operating income rose 8% to $686 million and included a $54 million pension charge compared to operating income of $633 million in Q4 2017. The Company's reported quarter adjusted operating income, increased 12% to $755 million on a y-o-y basis.
For Q4 2017, Marsh & McLennan's earnings totaled $29 million, or $0.06 per diluted share, compared to earnings of $436 million, or $0.84 per diluted share, in Q4 2016. The Company's reported quarter results included a charge of $460 million related to the changes in US tax reform as well as the $54 million pension charge. The Company's adjusted earnings rose 18% to $1.05 per share compared to $0.89 per share in the prior year's same quarter, and ahead of Wall Street's estimates of $0.95 per share.
For the full year (FY) 2017, Marsh & McLennan's revenue was $14.02 billion, reflecting an increase of 6% compared to FY16 revenue of $13.21 billion, or 3% on an underlying basis.
Marsh & McLennan's earnings totaled $1.49 billion, or $2.87 per share, compared to $1.71 billion, or $3.38 per share, in FY16. The Company's FY17 adjusted earnings per share increased 15% to $3.92 compared to $3.42 in FY16.
Marsh & McLennan's Segment Results
During Q4 2017, the Risk & Insurance Services segment's revenue grew 9% to $1.96 billion on a y-o-y basis compared to $1.79 billion in Q4 2016, or 3% on an underlying basis. The segment's operating income was $416 million in the reported quarter, essentially flat with the prior year and included $47 million of the $54 million pension charge. The segment's adjusted operating income increased 12% to $473 million on a y-o-y basis.
Within the Risk & Insurance Services, Marsh's revenue totaled $1.7 billion, reflecting an increase of 9% on a y-o-y basis, or 3% on an underlying basis. In US/Canada, underlying revenue rose 4%. International operations produced underlying revenue growth of 1%, reflecting underlying growth of 5% in Asia/Pacific, and 9% in Latin America partially offset by a decline of 3% in Europe, Middle-East, and Africa (EMEA).
During Q4 2017, the Risk & Insurance Services' Guy Carpenter division's revenue totaled $239 million, up 7% on an underlying basis.
During Q4 2017, the Consulting segment revenue advanced 10% to $1.74 billion on a y-o-y basis compared to $1.58 billion in Q4 2016. The segment's operating income of $321 million rose 21% on a y-o-y basis, while adjusted operating income advanced 10% to $330 million.
The Consulting segment's Mercer division's revenue was $1.2 billion in Q4 2017, reflecting an increase of 9%, or 4% on an underlying basis. Wealth revenue grew 4% on an underlying basis. Within Wealth, Defined Benefit Consulting & Administration increased 1% on an underlying basis, while Investment Management & Related Services increased 12%.
During Q4 2017, the Consulting segment's Oliver Wyman Group's revenue totaled $546 million, up 9% on an underlying basis.
Cash Matters
As of December 31, 2017, Marsh & McLennan's cash and cash equivalents totaled $1.21 billion compared to $1.03 billion as on December 31, 2016. The Company repurchased 3.6 million shares of stock for $300 million in Q4 2017. For FY17, the Company repurchased 11.5 million shares for $900 million.
Stock Performance Snapshot
February 20, 2018 - At Tuesday's closing bell, Marsh & McLennan's stock was marginally up 0.91%, ending the trading session at $83.51.
Volume traded for the day: 1.77 million shares.
Stock performance in the last month - up 1.74%; previous three-month period - up 0.72%; past twelve-month period - up 13.59%; and year-to-date - up 2.60%
After yesterday's close, Marsh & McLennan's market cap was at $42.76 billion.
Price to Earnings (P/E) ratio was at 29.17.
The stock has a dividend yield of 1.80%.
The stock is part of the Financial sector, categorized under the Insurance Brokers industry.
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