Willis Towers Watson (WTW) Q2 Earnings Preview: What You Should Know Beyond the Headline Estimates

Core Insights - The upcoming earnings report from Willis Towers Watson (WTW) is projected to show quarterly earnings of $2.65 per share, reflecting a 3.9% increase year-over-year, while revenues are expected to decline by 1.4% to $2.23 billion [1] Earnings Estimates - The consensus EPS estimate has been revised upward by 0.2% in the last 30 days, indicating a reassessment by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3] Revenue Projections - Analysts forecast 'Revenue- Health, Wealth and Career' at $1.18 billion, indicating a year-over-year decline of 6.5% [5] - The 'Revenue- Risk and Broking' is estimated at $1.04 billion, suggesting a year-over-year increase of 6.6% [5] - The overall 'Segment Revenue' is expected to reach $2.22 billion, reflecting a year-over-year change of -0.8% [5] Operating Income Estimates - The consensus for 'Segment Operating Income- Risk and Broking' is projected at $220.59 million, compared to $202.00 million from the previous year [6] - For 'Segment Operating Income- Health, Wealth and Career', the estimate is $284.46 million, up from $276.00 million year-over-year [7] Stock Performance - Over the past month, WTW shares have returned +2.8%, while the Zacks S&P 500 composite has increased by +4.9% [7] - WTW currently holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [7]