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Willis Towers (WLTW) Beats on Q3 Earnings, Revises View
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Willis Towers Watson Public Limited Company delivered third-quarter 2018 adjusted earnings of $1.32 per share, surpassing the Zacks Consensus Estimate of $1.11 by 18.9%.
Willis Towers Watson Public Limited Company Price, Consensus and EPS Surprise
The quarter under discussion witnessed organic revenue growth as well as a consistent margin expansion.
Also, the bottom line improved 17.9% from the year-ago quarter’s figure.
Operational Update
Willis Towers Watson posted adjusted consolidated revenues of $1.9 million, flat year over year on a reported basis. However, the metric grew 5% on organic basis. Meanwhile, the top line missed the Zacks Consensus Estimate by 1.3%.
Total cost of providing services slipped 1.9% year over year to $1.8 billion.
Adjusted EBITDA was $313 million, down 2.8% year over year. Adjusted EBITDA margin was 16.8%.
Adjusted operating income declined 11.8% year over year to $194 million in the reported quarter.
Quarterly Segment Update
Human Capital & Benefits: Total revenues of $778 million were up 6%. Operating margin was 25%.
Corporate Risk & Broking: Total revenues of $622 million improved 4% year over year. Operating margin was 11% in the quarter under review.
Investment, Risk & Reinsurance: Total revenues of $317 million slid 1% from the prior-year quarter’s number. Operating margin was 9%.
Benefits Delivery & Administration: Total revenues of $217 million plunged 30% year over year. Operating margin was (26%).
Financial Update
Cash and cash equivalents decreased 9.6% to $931 million from the 2017-end level.
Long-term debt inched up 1.1% from the level at 2017 end to nearly $4.5 billion at the reported quarter-end.
Shareholders’ equity dipped 0.8% from the level on Dec 31, 2017 to $10 billion as of Sep 30, 2018.
For the first nine months ended Sep 30, 2018, cash from operations improved 39% year over year to $716 million. For the same period this year, free cash flow was $507 million, up 60% year over year.
The company bought back shares worth $132 million in the quarter under review.
2018 Guidance
Willis Towers projects adjusted earnings per share between $10.12 and $10.32 in 2018, up from the earlier outlook of $9.88-$10.12. Constant currency revenue growth is estimated at around 3% while a 4% rise is anticipated on organic basis.
The company projects tax rate between 20% and 21% (down from the earlier guided range of 22-23%).
Among other insurance brokers having reported third-quarter earnings so far, the bottom line of Aon Plc (AON - Free Report) , Arthur J. Gallagher & Co. (AJG - Free Report) and Brown & Brown, Inc. (BRO - Free Report) beat the respective Zacks Consensus Estimate.
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Willis Towers (WLTW) Beats on Q3 Earnings, Revises View
Willis Towers Watson Public Limited Company delivered third-quarter 2018 adjusted earnings of $1.32 per share, surpassing the Zacks Consensus Estimate of $1.11 by 18.9%.
Willis Towers Watson Public Limited Company Price, Consensus and EPS Surprise
Willis Towers Watson Public Limited Company Price, Consensus and EPS Surprise | Willis Towers Watson Public Limited Company Quote
The quarter under discussion witnessed organic revenue growth as well as a consistent margin expansion.
Also, the bottom line improved 17.9% from the year-ago quarter’s figure.
Operational Update
Willis Towers Watson posted adjusted consolidated revenues of $1.9 million, flat year over year on a reported basis. However, the metric grew 5% on organic basis. Meanwhile, the top line missed the Zacks Consensus Estimate by 1.3%.
Total cost of providing services slipped 1.9% year over year to $1.8 billion.
Adjusted EBITDA was $313 million, down 2.8% year over year. Adjusted EBITDA margin was 16.8%.
Adjusted operating income declined 11.8% year over year to $194 million in the reported quarter.
Quarterly Segment Update
Human Capital & Benefits: Total revenues of $778 million were up 6%. Operating margin was 25%.
Corporate Risk & Broking: Total revenues of $622 million improved 4% year over year. Operating margin was 11% in the quarter under review.
Investment, Risk & Reinsurance: Total revenues of $317 million slid 1% from the prior-year quarter’s number. Operating margin was 9%.
Benefits Delivery & Administration: Total revenues of $217 million plunged 30% year over year. Operating margin was (26%).
Financial Update
Cash and cash equivalents decreased 9.6% to $931 million from the 2017-end level.
Long-term debt inched up 1.1% from the level at 2017 end to nearly $4.5 billion at the reported quarter-end.
Shareholders’ equity dipped 0.8% from the level on Dec 31, 2017 to $10 billion as of Sep 30, 2018.
For the first nine months ended Sep 30, 2018, cash from operations improved 39% year over year to $716 million. For the same period this year, free cash flow was $507 million, up 60% year over year.
The company bought back shares worth $132 million in the quarter under review.
2018 Guidance
Willis Towers projects adjusted earnings per share between $10.12 and $10.32 in 2018, up from the earlier outlook of $9.88-$10.12. Constant currency revenue growth is estimated at around 3% while a 4% rise is anticipated on organic basis.
The company projects tax rate between 20% and 21% (down from the earlier guided range of 22-23%).
Zacks Rank
Willis Towers carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Among other insurance brokers having reported third-quarter earnings so far, the bottom line of Aon Plc (AON - Free Report) , Arthur J. Gallagher & Co. (AJG - Free Report) and Brown & Brown, Inc. (BRO - Free Report) beat the respective Zacks Consensus Estimate.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>