Back to top

Image: Bigstock

Countdown to Willis Towers Watson (WTW) Q3 Earnings: A Look at Estimates Beyond Revenue and EPS

Read MoreHide Full Article

In its upcoming report, Willis Towers Watson (WTW - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $2.68 per share, reflecting an increase of 19.6% compared to the same period last year. Revenues are forecasted to be $2.28 billion, representing a year-over-year increase of 5.3%.

The current level reflects an upward revision of 0.1% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

In light of this perspective, let's dive into the average estimates of certain Willis Towers Watson metrics that are commonly tracked and forecasted by Wall Street analysts.

The collective assessment of analysts points to an estimated 'Revenue- Health, Wealth and Career' of $1.34 billion. The estimate indicates a change of +4.8% from the prior-year quarter.

Analysts predict that the 'Revenue- Risk and Broking' will reach $935.50 million. The estimate points to a change of +9.4% from the year-ago quarter.

According to the collective judgment of analysts, 'Revenue- Segment Revenue' should come in at $2.26 billion. The estimate suggests a change of +5.9% year over year.

The consensus estimate for 'Revenue- Reimbursable expenses and other' stands at $23.60 million. The estimate indicates a year-over-year change of -18.6%.

Analysts expect 'Segment Operating Income- Risk and Broking' to come in at $147.09 million. The estimate compares to the year-ago value of $134 million.

The combined assessment of analysts suggests that 'Segment Operating Income- Health, Wealth and Career' will likely reach $317.80 million. Compared to the current estimate, the company reported $305 million in the same quarter of the previous year.

View all Key Company Metrics for Willis Towers Watson here>>>

Over the past month, Willis Towers Watson shares have recorded returns of -0.9% versus the Zacks S&P 500 composite's +2% change. Based on its Zacks Rank #3 (Hold), WTW will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Willis Towers Watson Public Limited Company (WTW) - free report >>

Published in