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Compared to Estimates, Willis Towers Watson (WTW) Q1 Earnings: A Look at Key Metrics
ZACKS· 2025-04-24 14:36
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Willis Towers Watson performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: View all Key Company Metrics for Willis Towers Watson here>>> Willis Towers Watson (WTW) reported $2.22 billion in revenue for the quarter ended March 2025, r ...
WTW Reports First Quarter 2025 Earnings
Globenewswire· 2025-04-24 10:05
Core Insights - WTW reported a solid start to 2025, with results aligning with expectations and progress on strategic goals [2] - The company is focused on growth, efficiency, and margin expansion amid economic uncertainty [2] Consolidated Results - Revenue for Q1 2025 was $2.22 billion, a decrease of 5% from $2.34 billion in Q1 2024; on a constant currency basis, revenue decreased by 4%, but organic revenue grew by 5% [3][5] - Income from operations increased by 54% to $432 million, with an operating margin of 19.4%, up 740 basis points year-over-year [3][6] - Net income rose to $239 million, a 23% increase from $194 million in the prior year [3][6] - Diluted EPS increased by 27% to $2.33, while adjusted diluted EPS remained stable at $3.13 [3][6] Segment Highlights Health, Wealth & Career (HWC) - HWC segment revenue was $1.17 billion, down 13% year-over-year; however, organic growth was 3% [9][10] - Operating income decreased by 7% to $311 million, with an operating margin of 26.7%, up 160 basis points [9][10] Risk & Broking (R&B) - R&B segment revenue increased by 5% to $1.03 billion, with organic growth also at 7% [11][12] - Operating income rose by 11% to $226 million, and operating margin improved to 22.0%, up 120 basis points [11][12] Cash Flow and Capital Allocation - Cash flows used in operating activities were $(35) million, compared to $24 million in the prior year; free cash flow was $(86) million, down from $(36) million [7][8] - The company repurchased 607,221 shares for $200 million during the quarter [8] Financial Considerations - The company expects share repurchases of approximately $1.5 billion, subject to market conditions [14] - Anticipated foreign currency impact on adjusted diluted earnings per share is expected to be neutral in 2025 [14]
Willis Towers Watson(WTW) - 2025 Q1 - Quarterly Results
2025-04-24 10:00
EXHIBIT 99.1 WTW Reports First Quarter 2025 Earnings LONDON, April 24, 2025 (GLOBE NEWSWIRE) -- WTW (NASDAQ: WTW) (the "Company"), a leading global advisory, broking and solutions company, today announced financial results for the first quarter ended March 31, 2025. "We had a solid start to the year, delivering results in line with our expectations and making strong progress on our strategy to accelerate our performance, enhance our efficiency and optimize our portfolio," said Carl Hess, WTW's chief executi ...
Willis appoints Harry Merker to P&C and AAIS Leadership teams in North America
Newsfilter· 2025-04-23 13:17
NEW YORK, April 23, 2025 (GLOBE NEWSWIRE) -- Willis, a WTW business (NASDAQ:WTW), today announced the appointment of Harry Merker as Property and Casualty (P&C) Cross Industry Sales Leader and Alternative Asset Insurance Solutions (AAIS) Sales, Strategy and Execution Leader for North America (NA). In this newly created dual role, Merker will drive broking growth initiatives across Willis' P&C business and lead strategic broking sales efforts and collaboration across the company's 12 industry verticals. He w ...
Willis appoints Harry Merker to P&C and AAIS Leadership teams in North America
Globenewswire· 2025-04-23 13:17
NEW YORK, April 23, 2025 (GLOBE NEWSWIRE) -- Willis, a WTW business (Nasdaq: WTW), today announced the appointment of Harry Merker as Property and Casualty (P&C) Cross Industry Sales Leader and Alternative Asset Insurance Solutions (AAIS) Sales, Strategy and Execution Leader for North America (NA). In this newly created dual role, Merker will drive broking growth initiatives across Willis’ P&C business and lead strategic broking sales efforts and collaboration across the company’s 12 industry verticals. He ...
Willis Towers Gears Up to Report Q1 Earnings: Here's What to Expect
ZACKS· 2025-04-21 15:40
Core Viewpoint - Willis Towers Watson (WTW) is expected to report first-quarter 2025 earnings on April 24, with a history of earnings surprises averaging 6.29% over the last four quarters [1] Revenue Insights - Revenues for the first quarter are projected at $2.31 billion, reflecting a decrease of 1.1% compared to the same quarter last year [2] - Organic revenue growth in Health is anticipated due to increased project work and brokerage income in North America, along with the expansion of the Global Benefits Management client portfolio in International and Europe [2] Segment Performance - The Wealth business is expected to benefit from higher Retirement work globally and growth in the Investments business driven by the LifeSight solution and capital market improvements [3] - Career revenues are likely to see positive impacts from increased advisory services and product revenues [3] - The Benefits Delivery & Outsourcing segment may experience moderating growth in the TRANZACT business [3] Corporate Risk & Broking - Corporate Risk & Broking is anticipated to benefit from higher new business activity and strong client retention [4] Expense Outlook - First-quarter expenses are expected to rise due to higher incentive costs, salary expenses, losses on professional liability claims, and increased consulting and compensation costs related to the Transformation program, with a projected decrease of 2.8% to $2 billion [4] Earnings Estimates - The Zacks Consensus Estimate for first-quarter earnings per share is $3.23, indicating a decrease of 1.8% from the previous year [5] Earnings Prediction Model - The earnings prediction model does not indicate a conclusive earnings beat for WTW, as the Earnings ESP is -3.06% with a Zacks Rank of 4 (Sell) [6][7]
Earnings Preview: Willis Towers Watson (WTW) Q1 Earnings Expected to Decline
ZACKS· 2025-04-17 15:06
Willis Towers Watson (WTW) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on April 24, 2025, might help the stock move higher if these key numbers are better th ...
Willis appoints Dom Spinelli Head of Transactional Insurance Claims in North America
Newsfilter· 2025-04-10 12:00
NEW YORK, April 10, 2025 (GLOBE NEWSWIRE) -- Willis, a WTW business (NASDAQ:WTW), today announced the appointment of Dom Spinelli as Head of Transactional Insurance Claims for North America. In this role, he will lead the claims function within Willis' Alternative Asset Insurance Solutions (AAIS) industry vertical division, overseeing the entire lifecycle of transactional insurance claims, including representations and warranties, tax, and contingent matters. Spinelli brings 15 years of experience in insura ...
WTW unveils next phase in rollout of its Neuron digital trading platform
Newsfilter· 2025-04-10 07:00
Core Insights - Liberty Specialty Markets (LSM) has begun using WTW's digital trading solution, Neuron, for live trading of Directors & Officers (D&O) and Cyber risks [1][2] - The integration of LSM's capacity into Neuron is part of a broader expansion strategy that aims to enhance trading capabilities across various market classes [2][3] Company Developments - Neuron connects brokers and insurers in real time, facilitating the trading of complex specialty risks and improving efficiency in the insurance value chain [3][4] - LSM's commitment to digital trading reflects a strategic move to offer brokers a faster and more flexible trading experience, enhancing tailored portfolio underwriting solutions [4] - The London market is experiencing a shift towards algorithmic capacity offerings, with Neuron leading innovations that benefit global clients [4] Industry Trends - The digital marketplace created by Neuron allows participants to maintain control over their assets while promoting transparency and consistency in trading [3] - The adoption of digital trading solutions like Neuron is expected to streamline the risk placement process, making it faster and more efficient as more carriers and brokers join [4]
WTW Lags Industry, Trades at a Discount: What Should Investors Do Now?
ZACKS· 2025-04-09 14:55
Core Viewpoint - Shares of Willis Towers Watson Public Limited Company (WTW) have gained 14.5% in the past year, underperforming the industry and Finance sector growth of 22.6% and 5.1% respectively, while outperforming the Zacks S&P 500 composite's decline of 1.5% [1] Company Performance - WTW has a market capitalization of $30.01 billion and an average trading volume of 0.6 million shares over the last three months [1] - WTW shares are trading below the 50-day moving average, indicating a bearish trend [1] Valuation Metrics - WTW shares are trading at a price to forward 12-month earnings of 17.17X, lower than the industry average of 21.66X, providing a better entry point for investors [3] Growth Projections - The Zacks Consensus Estimate for WTW's 2025 earnings per share indicates a year-over-year increase of 0.2%, with estimates for 2026 earnings per share and revenues showing increases of 13.6% and 5.5% respectively [4] Earnings Performance - WTW has surpassed earnings estimates in each of the last four quarters, with an average beat of 6.29% [5] - The company has an impressive Growth Score of B, indicating strong growth prospects [5] Strategic Focus - WTW's growth strategy includes improving operating margins, increasing free cash flow conversion, and driving sustainable revenue growth [6] - The company is focusing on core opportunities in Risk and Broking and Individual Marketplace to spur long-term growth [6] Revenue Drivers - Strong performance in Health, Wealth & Career and Risk & Broking segments, supported by solid customer retention and geographic diversification, has fueled revenue growth for 15 consecutive quarters [8] Acquisitions and Financial Health - Strategic acquisitions have expanded WTW's geographical footprint and product portfolio [9] - The company is improving its liquidity and maintaining a solid balance sheet, which supports capital deployment for buybacks, dividends, and acquisitions [9] Shareholder Returns - WTW has a six-year CAGR of 5.7% in dividends and expects share repurchases to total approximately $1.5 billion in 2025 [10] Cost Challenges - Rising expenses, including higher salaries and benefits, have led to margin contraction, although WTW estimates long-term margin expansion [11] - WTW's trailing 12-month ROE of 20% is below the industry average of 29.5%, indicating inefficiency in using shareholders' funds [12] Conclusion - WTW has a strong product portfolio and a solid track record of strategic acquisitions, with favorable growth estimates in key segments [13]