Yahoo Finance Here's What to Expect from Willis Towers' (WTW) Q4 Earnings
Willis Towers Watson Public Limited Company WTW is set to report fourth-quarter 2022 earnings on Feb 9, before market open. The brokerage insurer delivered an earnings surprise in each of the last four quarters, the average being 3.80%.
Factors at Play
Willis Towers’ fourth-quarter revenues are likely to have witnessed higher levels of regulatory work in Great Britain and increased project activity, growth in Medicare Advantage revenues, increases in advisory work and product sale.
The Zacks Consensus Estimate for revenues is pegged at $2.6 billion, indicating a decrease of 0.8% from the year-ago quarter.
Risk and Broking is expected to have benefited from organic revenue growth across all regions, primarily driven by global lines of business, most notably in Aerospace, Natural Resources and FINEX.
In the fourth quarter, the wealth businesses are likely to have gained from organic revenue growth from higher levels of regulatory work in Great Britain and increased project activity related to financial market volatility. The upside is likely to be partially offset by headwinds from the negative impact of capital market performance. Career businesses, comprising Work & Rewards and Employee Experience businesses, are likely to have improved, given increased participation and sales in compensation benchmarking surveys and through increased project activity.
Health revenues in the fourth quarter are likely to have benefited from demand for products and advisory work combined with new client appointments, gains recorded in connection with book-of-business settlements, new client appointments, increases in advisory work and product sale.
Growth in Benefits Delivery & Outsourcing is likely to have been driven by the individual marketplace and reflected growth in Medicare Advantage revenues in the direct-to-consumer business.
Expenses in the quarter to be reported are likely to have increased because of higher restructuring costs and transaction and transformation.
Continued share buybacks are anticipated to have provided an additional boost to the bottom line.
The Zacks Consensus Estimate for earnings per share is pegged at $6.29, suggesting an increase of 10.9% 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. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which is not the case here.
Earnings ESP: Willis Towers has an Earnings ESP of -1.89%. This is because the Most Accurate Estimate is pegged at $6.17, lower than the Zacks Consensus Estimate of $6.29. 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 also with the right combination of elements to come up with an earnings beat this time around are:
American International Group, Inc. AIG has an Earnings ESP of +5.73% and a Zacks Rank of 2. The Zacks Consensus Estimate for fourth-quarter 2022 earnings is pegged at $1.19 per share, indicating a decrease of 24.7% from the year-ago reported figure.
AIG’s earnings beat estimates in three of the last four reported quarters while missing in one.
Arch Capital Group Ltd. ACGL has an Earnings ESP of +5.42% and a Zacks Rank of 3. The Zacks Consensus Estimate for Arch Capital’s fourth-quarter 2022 earnings is pegged at $1.34 per share, indicating an increase of 5.5% from the year-ago reported figure.
ACGL’s earnings beat estimates in three of the last four quarters and missed in the other one.
NMI Holdings Inc. NMIH has an Earnings ESP of +2.33% and a Zacks Rank of 3. The Zacks Consensus Estimate for NMI Holdings’ fourth-quarter 2022 earnings is pegged at 86 cents per share, indicating an increase of 17.8% from the year-ago reported figure.
NMIH’s earnings beat estimates in each of the four trailing quarters.
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American International Group, Inc. (AIG) : Free Stock Analysis Report
Willis Towers Watson Public Limited Company (WTW) : Free Stock Analysis Report
Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report
NMI Holdings Inc (NMIH) : Free Stock Analysis Report
