We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is a Beat in Store for Willis Towers (WLTW) in Q1 Earnings?
Read MoreHide Full Article
Willis Towers Watson Public Limited Company is slated to report first-quarter 2018 results on May 7, before the market opens. Last reported quarter, the company beat the Zacks Consensus Estimate by 4.74%.
Let’s see, how things are shaping up for this announcement.
Commissions and fees in the first quarter are likely to have improved on organic growth across all segments and a solid contribution from acquisitions. An improving rate environment might have cushioned better investment results. Efforts to ramp up revenues in North America by restructuring Corporate Risk and Broking business are expected to have paid off.
In its Exchange business, Willis Towers continues to maintain a robust 2018 sales pipeline in both the middle and large markets. For 2018, the company enrolled 0.2 million lives with 35,000 retirees in the individual marketplace and estimates another 45,000-55,000 retirees to enroll further. The Zacks Consensus Estimate for exchange solutions revenues is pegged at $192 million, up 1.6%, sequentially.
Operational Improvement Program and cost synergies derived from the company’s merger are likely to have benefited its margins.
Share buybacks have probably boosted the company’s bottom line.
However, hedging costs and adverse forex could limit this upside.
The Zacks Consensus Estimate for first-quarter earnings stands at $2.63 per share on revenues of $$2.2 billion. These in turn translate into a respective year-over-year decrease of 29.1% and nearly 7%.
What the Quantitative Model Indicates
Our proven model shows that Willis Towers is likely to beat estimates this to-be-reported quarter. This is because it has the right combination of the two main ingredients — a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for an earnings beat.
Zacks ESP: Willis Towers has an Earnings ESP of +0.71%. This is because the Most Accurate estimate of $2.65 is pegged higher than the Zacks Consensus Estimate of $2.63. 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
Zacks Rank: Willis Towers carries a Zacks Rank #3, which increases the predictive power of ESP. Further combined with a positive ESP, it increases the odds of a likely earnings surprise.
We caution against Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks to Consider
Some other stocks worth considering from the finance sector with the right combination of elements to also exceed estimates this time around are as follows:
Third Point Reinsurance Ltd. has an Earnings ESP of +5.97% and a Zacks Rank of 3. The company is scheduled to announce first-quarter earnings on May 9.
Banco Macro S.A. (BMA - Free Report) has an Earnings ESP of +1.23% and is a Zacks #3 Ranked player. The company is expected to release first-quarter earnings on May 9.
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.
Image: Bigstock
Is a Beat in Store for Willis Towers (WLTW) in Q1 Earnings?
Willis Towers Watson Public Limited Company is slated to report first-quarter 2018 results on May 7, before the market opens. Last reported quarter, the company beat the Zacks Consensus Estimate by 4.74%.
Let’s see, how things are shaping up for this announcement.
Commissions and fees in the first quarter are likely to have improved on organic growth across all segments and a solid contribution from acquisitions. An improving rate environment might have cushioned better investment results. Efforts to ramp up revenues in North America by restructuring Corporate Risk and Broking business are expected to have paid off.
In its Exchange business, Willis Towers continues to maintain a robust 2018 sales pipeline in both the middle and large markets. For 2018, the company enrolled 0.2 million lives with 35,000 retirees in the individual marketplace and estimates another 45,000-55,000 retirees to enroll further. The Zacks Consensus Estimate for exchange solutions revenues is pegged at $192 million, up 1.6%, sequentially.
Operational Improvement Program and cost synergies derived from the company’s merger are likely to have benefited its margins.
Share buybacks have probably boosted the company’s bottom line.
However, hedging costs and adverse forex could limit this upside.
The Zacks Consensus Estimate for first-quarter earnings stands at $2.63 per share on revenues of $$2.2 billion. These in turn translate into a respective year-over-year decrease of 29.1% and nearly 7%.
What the Quantitative Model Indicates
Our proven model shows that Willis Towers is likely to beat estimates this to-be-reported quarter. This is because it has the right combination of the two main ingredients — a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for an earnings beat.
Zacks ESP: Willis Towers has an Earnings ESP of +0.71%. This is because the Most Accurate estimate of $2.65 is pegged higher than the Zacks Consensus Estimate of $2.63. 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 and EPS Surprise | Willis Towers Watson Public Limited Company Quote
Zacks Rank: Willis Towers carries a Zacks Rank #3, which increases the predictive power of ESP. Further combined with a positive ESP, it increases the odds of a likely earnings surprise.
We caution against Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks to Consider
Some other stocks worth considering from the finance sector with the right combination of elements to also exceed estimates this time around are as follows:
National General Holdings Corp is set to report first-quarter earnings on May 7. The stock has an Earnings ESP of +5.59% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Third Point Reinsurance Ltd. has an Earnings ESP of +5.97% and a Zacks Rank of 3. The company is scheduled to announce first-quarter earnings on May 9.
Banco Macro S.A. (BMA - Free Report) has an Earnings ESP of +1.23% and is a Zacks #3 Ranked player. The company is expected to release first-quarter earnings on May 9.
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>>