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Marsh & McLennan (MMC) Q1 Earnings: Will Stock Surprise?

Marsh & McLennan Companies, Inc. MMC is scheduled to report first-quarter results before the opening bell on Apr 28. In the last quarter, this company delivered a 1.43% positive earnings surprise. Let’s see how things are shaping up for this announcement.

Factors Influencing This Past Quarter

Marsh & McLennan is expected to have witness improved revenues owing to its diversified global presence. Strategic acquisitions should add to the upside.

Both its segments are expected to see margin expansion on revenue improvement.

Share buybacks should give a boost to the bottom line.

However, adverse foreign expenses are likely to suppress growth. Expenses too are likely to have increased.

With respect to the surprise trend, the insurance broker delivered surprises in three of the last four quarters, with an average beat of 3.06%.

Marsh & McLennan’s share price has been fluctuating over the last few days. We wait to see how the stock reacts to the company’s first-quarter performance.

Earnings Whispers

Our proven model does not conclusively show that Marsh & McLennan will beat the Zacks Consensus Estimate in the first quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy) or at least 2 (Buy) or 3 (Hold) for this to happen. But this is not the case here as elaborated below.

Zacks ESP: Marsh & McLennan has 0.00% Earnings ESP. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 88 cents per share.

Zacks Rank: Marsh & McLennan has a Zacks Rank #3, which increases the predictive power of ESP. Moreover, the Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement.

Stocks to Consider

Here are some other companies you may want to consider as these also have the right combination of elements to post an earnings beat this quarter:

Validus Holdings, Ltd. VR has an Earnings ESP of +3.85% and a Zacks Rank #2. The company is set to report first-quarter earnings on Apr 28.

Arthur J Gallagher & Co. AJG has an Earnings ESP of +3.45% and a Zacks Rank #2. The company is slated to report first-quarter earnings on Apr 28.

Prudential Financial, Inc. PRU has an Earnings ESP of +0.42% and a Zacks Rank #2. The company is likely to report first-quarter earnings on May 4.
 

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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
MARSH &MCLENNAN (MMC): Free Stock Analysis Report
 
VALIDUS HOLDING (VR): Free Stock Analysis Report
 
GALLAGHER ARTHU (AJG): Free Stock Analysis Report
 
PRUDENTIAL FINL (PRU): Free Stock Analysis Report
 
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