(By Balaseshan) Marsh & McLennan Companies Inc. (NYSE: MMC) reported a 8.4% rise in quarterly earnings on higher revenue. Revenue missed, while adjusted earnings came in line with Street's expectations.
Earnings from continuing operations for the fourth quarter were $265 million or $0.47 per share, compared to $244 million or $0.44 per share last year. Adjusted earnings per share (EPS) rose to $0.52 from $0.46.
Revenue in the fourth quarter was $3.00 billion, an increase of 3% on both a reported and underlying basis from the previous year.
Analysts, on average, polled by Thomson Reuters had expected a profit of $0.52 per share on revenue of $3.01 billion for the fourth quarter.
Risk and Insurance Services segment revenue was $1.6 billion, an increase of 3%, or 2% on an underlying basis. Consulting segment revenue was $1.4 billion, an increase of 3% on both a reported and underlying basis.
Total Marsh revenue rose 4% to $1.42 billion, while total Mercer revenue increased 7%.
At the end of 2012, cash and cash equivalents was $2.3 billion, compared with $2.1 billion at the end of 2011. Net debt, which is total debt less cash and cash equivalents, was $617 million, compared with $815 million at the end of 2011.
MMC closed Monday's regular session at $36.35. The stock has been trading between $30.74 and $36.93 for the past 52 weeks.