Marsh & McLennan Companies (NYSE:MMC) Releases Quarterly Earnings Results, Beats Estimates By $0.07 EPS

Key Points

• Marsh & McLennan Companies reported quarterly earnings of $1.85 EPS, exceeding analyst expectations of $1.79 by $0.06, with revenue reaching $6.35 billion.
• The company announced a quarterly dividend of $0.90, reflecting an annualized dividend of $3.60 and a yield of 1.8%, payable on November 14th.
• Despite positive earnings, Marsh & McLennan's stock fell by 1.4% following the earnings report, with recent price targets set between $222.00 and $257.00 by various analysts.

Marsh & McLennan Companies (NYSE:MMC - Get Free Report) posted its earnings results on Thursday. The financial services provider reported $1.85 earnings per share for the quarter, beating the consensus estimate of $1.78 by $0.07, Zacks reports. The firm had revenue of $6.35 billion during the quarter, compared to analyst estimates of $6.34 billion. Marsh & McLennan Companies had a net margin of 16.00% and a return on equity of 31.90%. The business's quarterly revenue was up 11.5% on a year-over-year basis. During the same period in the previous year, the firm earned $1.63 EPS.

Marsh & McLennan Companies Trading Down 6.7%

Shares of NYSE MMC traded down $13.72 during trading on Thursday, hitting $190.13. 2,630,873 shares of the company were exchanged, compared to its average volume of 2,272,529. Marsh & McLennan Companies has a 12-month low of $185.12 and a 12-month high of $248.00. The company has a debt-to-equity ratio of 1.19, a quick ratio of 1.20 and a current ratio of 1.20. The company has a fifty day moving average price of $203.55 and a 200-day moving average price of $214.98. The firm has a market capitalization of $93.47 billion, a PE ratio of 22.80, a P/E/G ratio of 2.61 and a beta of 0.81.

Marsh & McLennan Companies Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, November 14th. Stockholders of record on Thursday, October 2nd will be issued a dividend of $0.90 per share. This represents a $3.60 annualized dividend and a dividend yield of 1.9%. The ex-dividend date is Thursday, October 2nd. Marsh & McLennan Companies's payout ratio is currently 43.17%.

Wall Street Analysts Forecast Growth

MMC has been the subject of several recent research reports. Barclays cut their target price on shares of Marsh & McLennan Companies from $233.00 to $221.00 and set an "equal weight" rating for the company in a report on Wednesday, October 8th. Wolfe Research began coverage on shares of Marsh & McLennan Companies in a research note on Tuesday, September 16th. They issued a "peer perform" rating on the stock. JPMorgan Chase & Co. raised shares of Marsh & McLennan Companies from a "neutral" rating to an "overweight" rating and dropped their price target for the company from $248.00 to $242.00 in a research note on Thursday, October 9th. Wells Fargo & Company dropped their price target on shares of Marsh & McLennan Companies from $226.00 to $222.00 and set an "equal weight" rating on the stock in a research note on Wednesday, October 8th. Finally, Citigroup initiated coverage on shares of Marsh & McLennan Companies in a research note on Wednesday, August 13th. They issued a "neutral" rating and a $226.00 price target on the stock. Seven investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $237.13.

Insider Activity at Marsh & McLennan Companies

In other news, CEO John Q. Doyle sold 21,079 shares of Marsh & McLennan Companies stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $205.65, for a total transaction of $4,334,896.35. Following the transaction, the chief executive officer owned 87,681 shares in the company, valued at $18,031,597.65. The trade was a 19.38% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.35% of the stock is currently owned by corporate insiders.

Institutional Trading of Marsh & McLennan Companies

Several institutional investors and hedge funds have recently bought and sold shares of MMC. Worldquant Millennium Advisors LLC raised its holdings in Marsh & McLennan Companies by 24.9% in the 2nd quarter. Worldquant Millennium Advisors LLC now owns 753,658 shares of the financial services provider's stock valued at $164,780,000 after buying an additional 150,191 shares during the period. Tidal Investments LLC increased its stake in Marsh & McLennan Companies by 389.7% during the second quarter. Tidal Investments LLC now owns 107,482 shares of the financial services provider's stock worth $23,500,000 after purchasing an additional 85,535 shares during the period. Man Group plc increased its stake in Marsh & McLennan Companies by 82.8% during the second quarter. Man Group plc now owns 107,570 shares of the financial services provider's stock worth $23,519,000 after purchasing an additional 48,738 shares during the period. Sone Capital Management LLC purchased a new stake in Marsh & McLennan Companies during the second quarter worth about $10,244,000. Finally, Corient Private Wealth LLC grew its position in shares of Marsh & McLennan Companies by 11.6% during the second quarter. Corient Private Wealth LLC now owns 403,247 shares of the financial services provider's stock worth $88,113,000 after buying an additional 41,836 shares in the last quarter. 87.99% of the stock is currently owned by hedge funds and other institutional investors.

About Marsh & McLennan Companies

Marsh & McLennan Cos., Inc is a professional services firm, which engages in offering clients advice and solutions in risk, strategy, and people. It operates through the Risk and Insurance Services, and Consulting segments. The Risk and Insurance Services segment is involved in risk management activities, as well as insurance and reinsurance broking and services.