NYSE$MRSH

Marsh & McLennan Cos Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Marsh & McLennan's financial results for Q2 2020 were reported, showing a mix of revenue decreases and income increases amidst the pandemic.

Marsh & McLennan Companies reported a decrease in consolidated revenue by 4% to $4.2 billion, but an increase in operating income by 30% to $885 million for the second quarter of 2020. Adjusted operating income rose by 10% to $984 million, and adjusted earnings per share increased by 12% to $1.32. The company recognized a $36 million reduction to previously recorded revenue due to the economic crisis impact on exposure units.

  • Consolidated revenue decreased by 4%, with a 2% decline on an underlying basis.
  • Operating income increased by 30% to $885 million.
  • Adjusted operating income rose by 10% to $984 million.
  • Adjusted earnings per share increased by 12% to $1.32.

Headline financials

Total Revenue

$4.19B

Previous: $4.35B-3.7%
EPS (adj)

$1.32

Previous: $1.18+11.9%
Capital Expenditures

-$200M

Previous: -$161M-24.2%
Free Cash Flow

$372M

Previous: $171M+117.5%
Net Income

$572M

Previous: $332M+72.3%
Operating Income

$885M

Previous: $680M+30.1%
Gross Profit

$3M

Previous: $7M-57.1%
Cash & Equivalents

$1.71B

Previous: $1.29B+32.2%
Total Assets

$32.2B

Previous: $32.1B+0.2%
Stock-Based Comp

$75M

Previous: $60M+25.0%

Revenue & EPS history

Marsh & McLennan · Revenue · Quarterly

$4.19B

Q2 2020-3.7%vs Q2 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Marsh & McLennan · $4.21B total across 4 segments · Q2 2020

  • Marsh Risk
    $2.16B
  • Mercer
    $1.15B
  • Marsh Mgmt Consulting
    $467M
  • Guy Carpenter
    $433M+10.5%

Forward guidance

No specific forward guidance was provided in the document.

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 Q2 2020

Historical avgQ2 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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