Professional services firm Marsh (NYSE: MRSH) will be reporting earnings this Tuesday before the bell. Here’s what to look for.
Marsh beat analysts’ revenue expectations last quarter, reporting revenues of $7.60 billion, up 7.6% year on year. It was a strong quarter for the company, with a narrow beat of analysts’ organic revenue estimates and a beat of analysts’ EPS estimates.
Is Marsh a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Marsh’s revenue to grow 4.3% year on year, slowing from the 12.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Marsh has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Marsh’s peers in the professional services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. ManpowerGroup delivered year-on-year revenue growth of 7.5%, beating analysts’ expectations by 2.9%, and Concentrix reported revenues up 1.9%, in line with consensus estimates. ManpowerGroup traded up 34.1% following the results while Concentrix was down 11.2%.
Read our full analysis of ManpowerGroup’s results here and Concentrix’s results here.
There has been positive sentiment among investors in the professional services segment, with share prices up 5.7% on average over the last month. Marsh is up 13.4% during the same time and is heading into earnings with an average analyst price target of $200.52 (compared to the current share price of $181.60).
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