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Willis Towers (WTW) to Report Q1 Earnings: What's in Store?
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Willis Towers Watson Public Limited Company (WTW - Free Report) is set to report first-quarter 2022 earnings on Apr 28, before market open. The company delivered an earnings surprise in each of the last four quarters, the average being 15.72%.
Factors at Play
Willis Towers’ first-quarter revenues are likely to have witnessed the impact of increased demand for advisory services, new business activity, strong renewals, technology sales, growth in Medicare Advantage and Life sales.
The Zacks Consensus Estimate for revenues is pegged at $2.3 billion, indicating a decline of 12.5% from the year-ago quarter.
Risk and Broking is expected to have benefited from new business across M&A, FINEX, Construction and Aerospace new business generation and strong renewals across several insurance lines, higher advisory-related fees, increased contingent performance fees, increased demand for advisory work alongside technology sales and performance-based new business.
In the first quarter, the Health, Wealth and Career segment is likely to have benefited from continued increased demand for advisory services and strong market demand for broad-based rewards advisory work. Growth in Individual Marketplace, primarily driven by TRANZACT, strong growth in Medicare Advantage and Life sales and an expanded client base are expected to have added to the upside.
Expenses in the quarter to be reported are likely to have decreased due to lower depreciation, amortization, decreases in travel and entertainment costs, local office expenses, bad debt expense and non-income tax costs, a lower depreciable base of assets due to business disposals, and reduced capital expenditures.
Share buybacks are likely to have benefited the bottom line.
The Zacks Consensus Estimate for earnings per share is pegged at $2.57, suggesting a decrease of 29.4% from the year-ago reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Willis Towers this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case as you can see below.
Earnings ESP: Willis Towers has an Earnings ESP of -0.71%. This is because the Most Accurate Estimate is pegged at $2.55, lower than the Zacks Consensus Estimate of $2.57. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Willis Towers Watson Public Limited Company Price and EPS Surprise
Some insurance stocks with the right combination of elements to come up with an earnings beat this time around are:
NMI Holdings Inc. (NMIH - Free Report) has an Earnings ESP of +4.00% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at 75 cents, indicating an increase of 20.9% from the year-ago reported figure.
NMIH’s earnings beat estimates in each of the four quarters of 2021.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +4.77% and a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at $3.08 per share, indicating a decrease of 49.6% from the year-ago reported figure.
ALL beat earnings estimates in three of the four quarters of 2021 and missed in one.
ProAssurance Corporation (PRA - Free Report) has an Earnings ESP of +27.54% and a Zacks Rank of 2. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at 17 cents, indicating an increase of 325% from the year-ago reported figure.
PRA’s earnings beat estimates in each of the four quarters of 2021.
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Willis Towers (WTW) to Report Q1 Earnings: What's in Store?
Willis Towers Watson Public Limited Company (WTW - Free Report) is set to report first-quarter 2022 earnings on Apr 28, before market open. The company delivered an earnings surprise in each of the last four quarters, the average being 15.72%.
Factors at Play
Willis Towers’ first-quarter revenues are likely to have witnessed the impact of increased demand for advisory services, new business activity, strong renewals, technology sales, growth in Medicare Advantage and Life sales.
The Zacks Consensus Estimate for revenues is pegged at $2.3 billion, indicating a decline of 12.5% from the year-ago quarter.
Risk and Broking is expected to have benefited from new business across M&A, FINEX, Construction and Aerospace new business generation and strong renewals across several insurance lines, higher advisory-related fees, increased contingent performance fees, increased demand for advisory work alongside technology sales and performance-based new business.
In the first quarter, the Health, Wealth and Career segment is likely to have benefited from continued increased demand for advisory services and strong market demand for broad-based rewards advisory work. Growth in Individual Marketplace, primarily driven by TRANZACT, strong growth in Medicare Advantage and Life sales and an expanded client base are expected to have added to the upside.
Expenses in the quarter to be reported are likely to have decreased due to lower depreciation, amortization, decreases in travel and entertainment costs, local office expenses, bad debt expense and non-income tax costs, a lower depreciable base of assets due to business disposals, and reduced capital expenditures.
Share buybacks are likely to have benefited the bottom line.
The Zacks Consensus Estimate for earnings per share is pegged at $2.57, suggesting a decrease of 29.4% from the year-ago reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Willis Towers this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case as you can see below.
Earnings ESP: Willis Towers has an Earnings ESP of -0.71%. This is because the Most Accurate Estimate is pegged at $2.55, lower than the Zacks Consensus Estimate of $2.57. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Willis Towers Watson Public Limited Company Price and EPS Surprise
Willis Towers Watson Public Limited Company price-eps-surprise | Willis Towers Watson Public Limited Company Quote
Zacks Rank: Willis Towers carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Some insurance stocks with the right combination of elements to come up with an earnings beat this time around are:
NMI Holdings Inc. (NMIH - Free Report) has an Earnings ESP of +4.00% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at 75 cents, indicating an increase of 20.9% from the year-ago reported figure.
NMIH’s earnings beat estimates in each of the four quarters of 2021.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +4.77% and a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at $3.08 per share, indicating a decrease of 49.6% from the year-ago reported figure.
ALL beat earnings estimates in three of the four quarters of 2021 and missed in one.
ProAssurance Corporation (PRA - Free Report) has an Earnings ESP of +27.54% and a Zacks Rank of 2. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at 17 cents, indicating an increase of 325% from the year-ago reported figure.
PRA’s earnings beat estimates in each of the four quarters of 2021.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.