Earnings Preview: March & McLennan

Feb.10.09 | About: Marsh & (MMC)

Marsh & McLennan (NYSE:MMC) is expected to report Q4 earnings on Wednesday, February 11 before the market open, with a conference call scheduled for 8:30 am ET.


The consensus estimate for EPS is 32c and the consensus estimate for revenue is $2.98B, according to First Call. The consensus range for EPS is 28c-36c, while the consensus range for revenue is $2.80B-$3.05B.

Analyst Views

Marsh & McLennan CEO Brian Duperreault recently told Reuters that Kroll, the company's fraud investigation unit, is growing its revenues as firms try to avoid becoming victims of Ponzi schemes or fraudulent accounting scandals. In addition, Duperreault said that the company would try to make acquisitions in the U.S. and abroad this year, in order to bolster both its consulting and insurance brokerage businesses. Marsh & McLennan's eagerness to carry out acquisitions should be somewhat reassuring to investors.

Meanwhile, American Phil Davidson recently told Barron's that he believes the worst is over at Marsh & McLennan. Davidson added that he thinks Marsh & McLennan has fewer issues than other financial companies, while the company could benefit from the dissolution of AIG (NYSE:AIG). The break-up of AIG may allow Marsh & McLennan to increase its margins, Davidson explained.