- Marsh McLennan’s 1Q revenue was $7.06 billion, a 9.1% increase compared to the previous year, aligning with estimates of $7.04 billion.
- The company’s adjusted operating margin stood at 31.8%, slightly below last year’s 32% and less than the estimated 32.2%.
- Risk & Insurance Services had an adjusted operating margin of 38.2%, a decrease from 39.1% the previous year, and below the estimated 38.8%.
- The Consulting segment saw an improved adjusted operating margin of 21.2%, up from the previous 20.7% and exceeding the estimated 20.9%.
- Adjusted operating income was $2.24 billion, marking a 13% year-over-year increase and surpassing the estimate of $2.18 billion.
- Risk & Insurance Services segment’s adjusted operating profit hit $1.81 billion, a 13% boost year-over-year, above the $1.74 billion estimate.
- The Consulting segment’s adjusted operating profit rose to $491 million, an 11% increase year-over-year, exceeding the estimate of $469 million.
- Overall underlying revenue grew by 4%, falling short of the estimated 5.15% growth.
- The Consulting segment’s underlying revenue growth was 4%, while the estimated growth was 4.77%.
- Risk & Insurance Services segment’s underlying revenue growth also reached 4%.
- Capital expenditure was reduced to $55 million, down 37% compared to the previous year.
- Compensation expenses rose to $3.85 billion, an increase of 11% year-over-year and higher than the estimated $3.73 billion.
- John Doyle, President and CEO, stated that the company had a solid start to the year with 9% revenue growth, showcasing business momentum and contributions from acquisitions.
- Analyst recommendations for Marsh McLennan include 8 buys, 12 holds, and 3 sells.
Marsh & Mclennan on Smartkarma
On Smartkarma, top independent analysts like Baptista Research have been covering Marsh & McLennan. Baptista Research published insightful reports on the company’s performance and future prospects. In their report “Marsh McLennan: Can Insurance Pricing Cycles Sustain Growth in the Long Run? – Major Drivers,” they highlighted the company’s strong financial growth in 2024, with an 8% revenue increase to $24.5 billion and a 7% underlying revenue growth. The analysts also noted the company’s aggressive acquisition strategy, including a significant deal to acquire McGriff, contributing to their success.
In another report titled “Marsh & McLennan Companies: Expanding Middle Market Reach For A Competitive Edge! – Major Drivers,” Baptista Research praised Marsh & McLennan’s solid financial performance in the third quarter of 2024. They highlighted the company’s 5% underlying revenue growth, supported by strong execution in Risk and Insurance Services and Consulting. The analysts also noted a 12% increase in adjusted operating income and an expanded operating margin, reflecting effective cost management and operational efficiency.
A look at Marsh & Mclennan Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Marsh & McLennan Companies, Inc., a professional services firm specializing in risk, strategy, and human capital solutions, is positioned for a promising long-term outlook based on Smartkarma Smart Scores. With a solid Growth score of 4, the company demonstrates potential for expansion and development. Additionally, a high Momentum score of 5 indicates strong market performance and upward trend potential. While the Value score is moderate at 2, indicating fair valuation, the company’s Resilience score of 3 reflects its ability to weather challenges. With a respectable Dividend score of 3, Marsh & McLennan also offers consistent dividend payouts to investors.
Overall, Marsh & McLennan Companies, Inc. is viewed positively in terms of its long-term prospects, particularly due to its impressive Growth and Momentum scores. As a provider of expert analysis, advice, and transactional capabilities to a global client base, the company’s resilience and dividend payouts further enhance its attractiveness to investors.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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