Q4 snap: strong operating result
MMC delivered adjusted EPS of $1.05, 12% above consensus with revenues 2% above consensus. Margin expansion was a little soft at +40bp YoY but we believe this is due to the strength of Oliver Wyman (+9%), which is lower margin. Adjusted operating income of $755m was up 12% YoY and 1% above consensus. Within that, Risk delivered organic revenue growth of 3% and margin expansion of 60bp, leading to adjusted operating income growth of 12% YoY. Consulting delivered impressive underlying revenue growth of 6% (+12% in Investment Management, +9% at Oliver Wyman, partly offset by 1% growth in DB consulting), while margins were up only 10bp, leaving adjusted operating income growth of 10%. Buybacks of $300m were in line with our forecast. Overall, this was a strong result.Marsh & McLennan Companies is a holding company. Through its subsidiaries, the company provides clients advice and solutions in risk, strategy and people. The company provides analysis, advice and transactional capabilities to clients. The company conducts business through two segments: Risk and Insurance Services, which includes risk management activities (risk advice, risk transfer and risk control and mitigation solutions) as well as insurance and reinsurance broking and services; and Consulting, which includes health, wealth and career services and products, and other management, economic and brand consulting services.
Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.
Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.
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