Analysts at investment banking firm Keefe, Bruyette & Woodsoffer their views on what to expect from some brokers they followas first-quarter financial results are announced.
|All Q1 2013 figures are estimates provided by KBW.
|
Aonplc
Reporting date: 4/26 (conferencecall)
|What to look for:
- Commentary on demand for defined benefit consultingservices as clients transition to defined contribution models.
- Update on brokerage margin expansion outlook.
- Discussion of trends in the European economy andthe impact on demand for consulting services.
Revenue Growth
|Q1 2012: 3%
|Q1 2013E: 2.7%
|Organic Revenue Growth
|Q1 2012: 4.2%
|Q1 2013E: 3.3%
|Operating Earnings Per Share
|Q1 2012: $0.97
|Q1 2013E: $1.11
|KBW Analyst: Meyer Shields
||
Arthur J. Gallagher& Co.
Reporting date: 4/30 after close
|What to look for:
- Update on investment in Chem Mod, which providestechnologies that can assist coal-fired power plants in meetingregulatory compliance while minimizing impact on operations.
- Commentary on workers' compensation rate increasesimpacting.
- Discussion of M&A financing (namely cash vs.stock).
Revenue Growth
|Q1 2012: 22.4%
|Q1 2013E: 17.0%
|Organic Revenue Growth
|Q1 2012: 3.2%
|Q1 2013E: 5.0%
|Operating Earnings Per Share
|Q1 2012: $0.26
|Q1 2013E: $0.23
|KBW Analyst: Meyer Shields
||
Marsh & McLennanCompanies, Inc.
Reporting date: 5/2 (conferencecall)
|What to look for:
- Updates on revenue expectations for recentlylaunched Mercer health exchange.
- Expectations for margin improvement in 2013,following 2012's improvement.
- Discussion on Europe's impact on consulting-segmentrevenues.
Revenue Growth
|Q1 2012: 5.8%
|Q1 2013E: 2.8%
|Organic Revenue Growth
|Q1 2012: 6.6%
|Q1 2013E: 4.2%
|Operating Earnings Per Share
|Q1 2012: $0.63
|Q1 2013E: $0.69
|KBW Analyst: Meyer Shields
||
Willis Group Holdingsplc
Reporting date: 4/30 after close
|What to look for:
- Discussion on profitability initiatives to addressinvestor concerns following CEO transition.
- Expectations for North America organic revenuegrowth in 2013 and beyond.
- Plans to implement health-exchange strategy, asWillis is the only global broker that has yet to announce astrategy.
Revenue Growth
|Q1 2012: 0.6%
|Q1 2013E: 3.4%
|Organic Revenue Growth
|Q1 2012: 2.2%
|Q1 2013E: 5.3%
|Operating Earnings Per Share
|Q1 2012: $1.32
|Q1 2013E: $1.34
|KBW Analyst: Meyer Shields
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