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Marsh & McLennan (MMC) Earnings Beat as Revenues Rise

Marsh & McLennan Companies, Inc. MMC is a dominant player of the global insurance brokerage and consulting services sector. The company’s rapid growth is mainly attributed to its aggressive mergers and acquisitions strategy aiding in expanded scale and size of its businesses across geographies, particularly in the Asia-Pacific, Africa and Latin America.

The ongoing economic recovery has been complementing well with the company’s high-standard products and services, thereby supporting client retention. Marsh & McLennan’s is always on foot when it comes to acquiring new businesses. Its strategic acquisitions and well-executed restructuring initiatives have generated new clients, triggering growth.

The company has been able to maintain its bottomline growth via its strong capital management. Its consistent cash flow generation has also facilitated effective capital deployment, reflected by share buybacks and dividend hikes.

Currently, Marsh & McLennan has a Zacks Rank #3 (Hold), but that could definitely change following its earnings report that has just been released. The key takeaways from this immediate announcement are highlighted below:

Earnings: Marsh & McLennan earnings beat our estimates. The company reported earnings per share of 92 cents, beating the estimate of 89 cents.

Revenue: Revenues of $3.3 billion were almost in line with our expectation.

Key Stats to Note: Total operating expenses of $2.6 billion was up nearly 5% year over year. Adjusted operating margin contracted 120 basis points year over year to 22.1%.

Marsh & McLennan bought back 3.5 million shares for $200 million during the quarter.

Check back later for our full write up on this MMC earnings report later!

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