NYSE$MRSH

Marsh & McLennan Cos Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported strong Q4 and full-year results, driven by revenue growth and margin expansion.

Marsh & McLennan reported a strong fourth quarter and full year 2021, with revenue increasing by 16% in Q4 to $5.1 billion and adjusted EPS increasing by 14% to $1.36. The company's performance was driven by underlying revenue growth of 10% and adjusted EPS growth of 24%, both the highest in over two decades.

  • Consolidated revenue increased by 16% to $5.1 billion, with underlying revenue growth of 10%.
  • Operating income was $986 million, compared to $571 million in the prior year period.
  • Adjusted EPS increased by 14% to $1.36, compared to $1.19 for the prior year period.
  • The Company repurchased 2.6 million shares of stock for $425 million in the fourth quarter.

Headline financials

Total Revenue

$5.14B

Previous: $4.42B+16.3%
EPS (adj)

$1.36

Previous: $1.19+14.3%
Underlying Rev Growth

10.0%

No prior period
Capital Expenditures

$138M

Previous: $70M+97.1%
Free Cash Flow

$1.3B

Previous: $1.31B-0.7%
Net Income

$803M

Previous: $374M+114.7%
Operating Income

$986M

Previous: $571M+72.7%
Gross Profit

$2.23B

Previous: $1.77B+26.4%
Cash & Equivalents

$1.75B

Previous: $2.09B-16.1%
Total Assets

$34.4B

Previous: $33B+4.1%
Stock-Based Comp

$85M

Previous: $71M+19.7%

Revenue & EPS history

Marsh & McLennan · Revenue · Quarterly

$5.14B

Q4 2021+16.3%vs Q4 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Marsh & McLennan · $5.15B total across 4 segments · Q4 2021

  • Marsh Risk
    $2.88B+21.7%
  • Mercer
    $1.38B+5.0%
  • Marsh Mgmt Consulting
    $722M+22.4%
  • Guy Carpenter
    $170M+4.9%

Forward guidance

The company did not provide specific forward guidance in this release. However, the CEO stated that they enter 2022 well positioned for continued growth.

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 Q4 2021

Historical avgQ4 2021

+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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