How did MMC's Q4 2024 earnings surprise investors?

Marsh & McLennan (MMC) delivered an earnings per share (EPS) surprise of $0.1 for Q4 2024, the latest report period, compared to the consensus estimate. This positive surprise indicates that the company's actual performance exceeded analysts' expectations, likely due to strong revenue growth and strategic acquisitions, as highlighted in the earnings call.

1. **Revenue Growth and Strategic Acquisitions**: MMC reported a 5% underlying revenue growth in Q3 2024, following a 10% growth in the same quarter last year. The company completed $300 million in share repurchases during the quarter and is on track for its largest M&A year in history, with nearly $10 billion committed to acquisitions year-to-date. These strategic moves have likely contributed to the company's strong financial performance and earnings surprise.
2. **Earnings Call Highlights**: During the earnings call, Marsh & McLennan highlighted several positive points, including robust revenue growth, adjusted EPS of $1.63, which represents a 4% increase from the previous year or 11% excluding a discrete tax benefit. The company's underlying revenue growth was driven by strong performance across its business segments, with Guy Carpenter reporting a 7% increase in revenue compared to the 6.5% average estimate.
3. **Analyst Expectations and Market Reaction**: Prior to the earnings release, analysts had estimated an EPS of $1.61 for Q3 2024, which MMC surpassed by $0.02. The company's stock price has shown positive momentum, with a 20.3% increase since the beginning of the year compared to the S&P 500's gain of 22.5%. While there was some concern about the impact of natural disasters and economic factors, the company's strong financial results and strategic initiatives have likely overshadowed these challenges.

In conclusion, Marsh & McLennan's Q4 2024 earnings surprise can be attributed to strong revenue growth, strategic acquisitions, and effective management decisions. These factors, combined with favorable market conditions, have enabled the company to exceed analysts' expectations and deliver robust financial performance.