Summary
Marsh & McLennan Companies, Inc. (MRSH) reported mixed results for the quarter ended June 30, 2015, with consolidated revenue declining slightly by 2% year-over-year to $3.2 billion, primarily due to unfavorable foreign currency translations, despite a 3% underlying revenue increase. Operating income saw a modest decrease of 3% to $629 million. The company's diluted earnings per share from continuing operations remained stable at $0.77 compared to the prior year. The Risk and Insurance Services segment experienced a 2% revenue decrease, while the Consulting segment also saw a 2% revenue decline, though underlying revenue for both segments showed positive growth. The company continued to actively manage its capital through share repurchases, investing $475 million in buybacks during the quarter under an expanded program. Long-term debt increased with new issuances, offset by some maturities and redemptions. The balance sheet remains solid, although cash and cash equivalents decreased significantly from the prior year-end, largely due to the active use of cash for acquisitions and share repurchases. Investors should monitor the impact of foreign currency fluctuations and the ongoing integration of acquired businesses.
Financial Highlights
51 data points| Revenue | $3.23B |
| Operating Expenses | $2.60B |
| Operating Income | $629.00M |
| Interest Expense | $40.00M |
| Net Income | $419.00M |
| EPS (Basic) | $0.78 |
| EPS (Diluted) | $0.77 |
| Shares Outstanding (Basic) | 535.00M |
| Shares Outstanding (Diluted) | 541.00M |
Key Highlights
- 1Consolidated revenue for Q2 2015 was $3.2 billion, down 2% year-over-year, impacted by foreign currency headwinds.
- 2Underlying revenue grew by 3% across the company, indicating organic business strength.
- 3Operating income decreased by 3% to $629 million, reflecting revenue pressures and increased costs like retirement benefits.
- 4Diluted EPS from continuing operations was $0.77, flat compared to the prior year.
- 5The company repurchased $475 million of its common stock in Q2 2015 under an expanded share buyback program.
- 6Cash and cash equivalents decreased substantially from $1.96 billion at year-end 2014 to $930 million as of June 30, 2015.
- 7The company completed 8 acquisitions in the first six months of 2015 for a total consideration of $331 million.