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Marsh & McLennan Swings to Q3 Profit on Cost Cuts (MMC)

By Dividend.com Staff
November 4th, 2009

marsh-mclennan-swings-to-q3-profit-on-cost-cuts-mmc

Risk and strategy consultants Marsh & McLennan Companies, Inc. (MMC) on Wednesday said it swung to a third quarter profit, helped by cost-cutting measures amid still declining revenue.

The New York-based company reported third quarter net income of $221 million, or 41 cents per share, compared with a net loss of $8 million, or 2 cents per share, in the year-ago period. Excluding items, adjusted profit was 48 cents per share.

Revenue fell 11% from last year, to $2.52 billion.

On average, Wall Street analysts expected a much smaller profit of just 26 cents per share, albeit on slightly higher revenue of $2.6 billion.

Marsh & McLennan shares rose 15 cents, or +0.6%, in morning trading Wednesday.

The Bottom Line
We had removed shares of MMC from our “recommended” list last Oct. 7, when shares were trading at $30.13. The company currently has a dividend yield of 3.42%, based on last night’s closing price of $23.37. The stock has technical support in the $18 price area. If the shares can continue to rebound higher, we see overhead resistance around the $24-26 price area. We would remain on the sidelines for now.

Marsh & McLennan Companies, Inc. (MMC) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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Disclaimer: Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. The author is not registered as an investment adviser. The author may or may not hold positions in the securities mentioned in this article or video. The author relies upon the "publisher's exclusion" from the definition of "investment adviser" as provided under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws.