Marsh & McLennan (MMC) delivered a strong third-quarter earnings report, surpassing analysts’ expectations and sending positive signals to investors. The global professional services firm reported earnings per share of $1.63, beating the consensus estimate of $1.57. Revenue for the quarter reached $5.70 billion, meeting analyst predictions.
This positive performance comes on the heels of a significant milestone: the acquisition of McGriff Insurance Services. John Doyle, President and CEO, highlighted the company’s ongoing momentum, noting 5% underlying revenue growth, 110 basis points of margin expansion, and 4% adjusted EPS growth. Excluding a one-time tax benefit from the previous year, adjusted EPS growth reached 11%.
The company’s robust performance has resonated with analysts, who have responded by adjusting their price targets. RBC Capital analyst Scott Heleniak maintained a Sector Perform rating for Marsh & McLennan but raised the price target from $232 to $242. Similarly, Roth MKM analyst Harry Fong kept a Neutral rating but increased the price target from $220 to $230.
These upward revisions in price targets reflect the analysts’ confidence in Marsh & McLennan’s future performance. The strong earnings results and strategic acquisition point towards a promising outlook for the company, making it a potential attractive investment opportunity.
For investors considering buying MMC stock, these recent developments provide valuable insights. The company’s consistent growth, strong financial performance, and strategic moves suggest a favorable trajectory. However, it’s important to conduct thorough research and consider your own investment goals and risk tolerance before making any investment decisions.