Marsh & McLennan Companies Inc (MMC, Financial) released its earnings report for the third quarter ended September 30, 2023, on October 19, 2023. The company reported an impressive performance with significant growth in GAAP revenue, operating income, and earnings per share (EPS).
Financial Highlights
MMC's consolidated revenue for Q3 2023 was $5.4 billion, marking a 13% increase compared to Q3 2022. On an underlying basis, revenue increased by 10%. Operating income rose by 26% to $996 million, while adjusted operating income, excluding noteworthy items, increased by 24% to $1.1 billion.
Net income attributable to MMC was $730 million, or $1.47 per diluted share, compared to $1.08 in Q3 2022. Adjusted earnings per share rose by 33% to $1.57 per diluted share compared to $1.18 a year ago.
Performance of Business Segments
Risk & Insurance Services revenue was $3.2 billion in Q3 2023, an increase of 12% on an underlying basis. Operating income rose 21% to $640 million, and adjusted operating income was $671 million, an increase of 19% versus a year ago.
Consulting revenue was $2.2 billion in Q3 2023, an increase of 13% on an underlying basis. Operating income increased 21% to $424 million, while adjusted operating income increased 24% to $447 million.
CEO's Commentary
Marsh McLennan's third quarter results were outstanding, reflecting strength across the business. We had another quarter of double-digit underlying revenue growth, strong adjusted EPS growth and margin expansion. We achieved these results while also continuing to make significant investments for the future." - John Doyle, President and CEO
Other Noteworthy Details
The company repurchased 1.6 million shares of stock for $300 million in Q3 2023. Through nine months ended September 30, 2023, the company has repurchased 5.1 million shares of stock for $900 million. In the same quarter, the company issued $1.6 billion of senior notes.
MMC's strong performance in Q3 2023 reflects the company's continued commitment to growth and value creation for its shareholders. The company's robust financial results and strategic investments position it well for future success.