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Can Willis Towers (WTW) Pull Off a Surprise in Q2 Earnings?
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Willis Towers Watson Public Limited Company (WTW - Free Report) is set to report second-quarter 2022 earnings on Jul 28, before market open. The brokerage insurer delivered an earnings surprise in each of the last four quarters, the average being 14.3%.
Factors at Play
Willis Towers’ second-quarter revenues are likely to have witnessed the impact of increased demand for advisory work, new business in North America, increased retention and technology sales, offset by lower growth in Medicare Advantage.
The Zacks Consensus Estimate for revenues is pegged at $2 billion, indicating a decline of 9.1% from the year-ago quarter.
Risk and Broking is expected to have benefited from increased technology solutions sales alongside increased demand for advisory work and new business in North America with notable strength in FINEX and M&A lines. The growth is likely to have been partially offset by a decline in revenues in Corporate Risk & Broking.
In the second quarter, the Health, Wealth and Career segment is likely to have benefited from strong demand for rewards consulting, pay benchmarking and software, the combination of increased retention, new client appointments and project work, growth from new clients and strong operating leverage from growth. Growth in Benefits Delivery & Outsourcing is likely to have declined due to a shift in the timing of revenues, along with lower growth in Medicare Advantage revenues.
Expenses in the quarter to be reported are likely to have decreased due to lower incentive and benefit accruals, a lower depreciable base of assets due to business disposals, amortization and decreases in transaction and transformation costs. Share buybacks are likely to have benefited the bottom line.
The Zacks Consensus Estimate for earnings per share is pegged at $2.31, suggesting a decrease of 13.2% from the year-ago reported figure.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Willis Towers this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: Willis Towers has an Earnings ESP of +1.79%. This is because the Most Accurate Estimate is pegged at $2.35, higher than the Zacks Consensus Estimate of $2.31. 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 also with the right combination of elements to come up with an earnings beat this time around are:
Arthur J. Gallagher & Co. (AJG - Free Report) has an Earnings ESP of +0.37% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2022 earnings is pegged at $1.68, indicating an increase of 43.6% from the year-ago reported figure.
AJG’s earnings beat estimates in each of the four trailing quarters.
CCC Intelligent Solutions Holdings Inc. (CCCS - Free Report) has an Earnings ESP of +4.35% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2022 earnings stands at 8 cents, indicating a decline of 99.5% from the year-ago reported figure.
CCCS beat earnings estimates in two of the last four reported quarters while missing the same in the other two.
The Hanover Insurance Group, Inc. (THG - Free Report) has an Earnings ESP of +0.79% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2022 earnings stands at $2.10, indicating a decline of 26.3% from the year-ago reported figure.
THG’s earnings beat estimates in each of the four trailing quarters.
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Can Willis Towers (WTW) Pull Off a Surprise in Q2 Earnings?
Willis Towers Watson Public Limited Company (WTW - Free Report) is set to report second-quarter 2022 earnings on Jul 28, before market open. The brokerage insurer delivered an earnings surprise in each of the last four quarters, the average being 14.3%.
Factors at Play
Willis Towers’ second-quarter revenues are likely to have witnessed the impact of increased demand for advisory work, new business in North America, increased retention and technology sales, offset by lower growth in Medicare Advantage.
The Zacks Consensus Estimate for revenues is pegged at $2 billion, indicating a decline of 9.1% from the year-ago quarter.
Risk and Broking is expected to have benefited from increased technology solutions sales alongside increased demand for advisory work and new business in North America with notable strength in FINEX and M&A lines. The growth is likely to have been partially offset by a decline in revenues in Corporate Risk & Broking.
In the second quarter, the Health, Wealth and Career segment is likely to have benefited from strong demand for rewards consulting, pay benchmarking and software, the combination of increased retention, new client appointments and project work, growth from new clients and strong operating leverage from growth. Growth in Benefits Delivery & Outsourcing is likely to have declined due to a shift in the timing of revenues, along with lower growth in Medicare Advantage revenues.
Expenses in the quarter to be reported are likely to have decreased due to lower incentive and benefit accruals, a lower depreciable base of assets due to business disposals, amortization and decreases in transaction and transformation costs.
Share buybacks are likely to have benefited the bottom line.
The Zacks Consensus Estimate for earnings per share is pegged at $2.31, suggesting a decrease of 13.2% from the year-ago reported figure.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Willis Towers this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: Willis Towers has an Earnings ESP of +1.79%. This is because the Most Accurate Estimate is pegged at $2.35, higher than the Zacks Consensus Estimate of $2.31. 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.
Other Stocks to Consider
Some insurance stocks also with the right combination of elements to come up with an earnings beat this time around are:
Arthur J. Gallagher & Co. (AJG - Free Report) has an Earnings ESP of +0.37% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2022 earnings is pegged at $1.68, indicating an increase of 43.6% from the year-ago reported figure.
AJG’s earnings beat estimates in each of the four trailing quarters.
CCC Intelligent Solutions Holdings Inc. (CCCS - Free Report) has an Earnings ESP of +4.35% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2022 earnings stands at 8 cents, indicating a decline of 99.5% from the year-ago reported figure.
CCCS beat earnings estimates in two of the last four reported quarters while missing the same in the other two.
The Hanover Insurance Group, Inc. (THG - Free Report) has an Earnings ESP of +0.79% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2022 earnings stands at $2.10, indicating a decline of 26.3% from the year-ago reported figure.
THG’s earnings beat estimates in each of the four trailing quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.