NYSE$MRSH

Marsh & McLennan Cos Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Marsh & McLennan had strong results in Q1 2020, with revenue and adjusted operating income increasing.

Marsh & McLennan Companies reported a strong first quarter in 2020. Total revenue increased by 14% to $4.7 billion, with underlying revenue growth of 5%. Adjusted operating income rose 15% to $1.2 billion, and adjusted EPS increased by 8% to $1.64.

  • Total revenue increased 14% year-over-year.
  • Underlying revenue grew by 5%.
  • Adjusted operating income increased by 15%.
  • Adjusted EPS increased by 8%.

Headline financials

Total Revenue

$4.65B

Previous: $4.07B+14.2%
EPS (adj)

$1.64

Previous: $1.52+7.9%
Underlying Rev Growth

5.0%

No prior period
Adj. Operating Inc Growth

15.0%

No prior period
Adjusted EPS Growth

8.0%

No prior period
Capital Expenditures

-$118M

Previous: $73M-261.6%
Free Cash Flow

$636M

Previous: -$349M+282.2%
Net Income

$754M

Previous: $716M+5.3%
Operating Income

$1.07B

Previous: $938M+14.1%
Gross Profit

$4M

Previous: $1.79B-99.8%
Cash & Equivalents

$1.48B

Previous: $1.12B+32.5%
Total Assets

$31.4B

Previous: $30.1B+4.2%
Stock-Based Comp

$72M

Previous: $57M+26.3%

Revenue & EPS history

Marsh & McLennan · Revenue · Quarterly

$4.65B

Q1 2020+14.2%vs Q1 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Marsh & McLennan · $4.65B total across 4 segments · Q1 2020

  • Marsh Risk
    $2.06B
  • Mercer
    $1.25B
  • Guy Carpenter
    $827M
  • Marsh Mgmt Consulting
    $511M

Forward guidance

Marsh & McLennan acknowledges that the COVID-19 pandemic will affect all businesses in 2020, but they are confident in their resilience and capabilities to help clients during this time.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.2%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+1.9%

Avg return

30 days after

53%

39 / 73 earnings

Positive

+7.7%

Q4 2018

Best reaction

-9.4%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.4%+2.3%-8.0%
Q4 2025+3.5%+5.8%+4.8%
Q3 2025-8.5%-7.3%-10.3%
Q2 2025-1.1%+0.8%-3.1%
Q1 2025-4.9%-5.1%+0.0%
Q4 2024+0.7%+1.7%+8.4%
Q3 2024-1.4%-2.7%-2.5%
Q2 2024-1.8%-0.7%+0.6%
Q1 2024+2.4%+2.1%+6.2%
Q4 2023-2.9%-2.8%+2.5%
Q3 2023-1.0%-0.4%+4.3%
Q2 2023+2.2%+3.2%+0.8%
Q1 2023+3.7%+2.4%+4.0%
Q4 2022-0.7%+0.9%-6.5%
Q3 2022-1.3%-2.5%+6.7%
Q2 2022+2.2%+1.5%+11.9%
Q1 2022-2.1%-3.5%-14.1%
Q4 2021-2.4%-0.3%+1.0%
Q3 2021+2.2%+1.8%+2.1%
Q2 2021+3.5%+3.0%+8.9%
Q1 2021+5.4%+6.7%+7.9%
Q4 2020+2.1%+4.9%+7.1%
Q3 2020-3.8%-0.9%+6.4%
Q2 2020+0.9%+1.6%-1.4%
Q1 2020+2.6%+6.0%+11.9%
Q4 2019-3.5%-1.0%-9.8%
Q3 2019+5.8%+6.5%+10.7%
Q2 2019-4.2%-4.1%-3.8%
Q1 2019-1.0%-0.4%+0.8%
Q4 2018+7.7%+9.9%+10.9%
Q3 2018+6.2%+9.1%+10.0%
Q2 2018-3.8%-4.8%-3.9%
Q1 2018-0.2%-1.4%-1.6%
Q4 2017+1.4%-1.5%-1.1%
Q3 2017-4.1%-4.2%-2.5%
Q2 2017-1.9%-1.8%-4.1%
Q1 2017+1.0%+0.9%+4.0%
Q4 2016+4.6%+3.5%+10.1%
Q3 2016-2.7%-2.3%+6.9%
Q2 2016-1.1%-0.6%+1.1%
Q1 2016+1.5%
Q4 2015+3.4%
Q3 2015+2.8%
Q2 2015-0.2%
Q1 2015-0.4%
Q4 2014-0.9%
Q3 2014+2.2%
Q2 2014+1.5%
Q1 2014-1.0%
Q4 2013+2.1%
Q3 2013+0.0%
Q2 2013-0.2%
Q1 2013+2.5%
Q4 2012-0.1%
Q3 2012+0.7%
Q2 2012+1.7%
Q1 2012+2.0%
Q4 2011-1.1%
Q3 2011+0.2%
Q2 2011-9.4%
Q1 2011+0.5%
Q4 2007+0.2%
Q4 2010+0.2%
Q3 2010-2.8%
Q2 2010+2.6%
Q1 2009+2.1%
Q1 2010-0.5%
Q4 2009+0.6%
Q3 2008+1.8%
Q3 2009+1.8%
Q2 2008-1.2%
Q4 2008-1.2%
Q2 2009-1.2%

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