Here's What to Expect From Willis Towers' (WTW) Q4 Earnings
Willis Towers Watson Public Limited Company WTW is set to report fourth-quarter 2023 earnings on Feb 6, before market open. The insurer posted a positive earnings surprise in the last reported quarter.
Factors at Play
Revenues in the fourth quarter are likely to have benefited from the increasing impact of ongoing investments in talent and technology and growth across all the segments. The Zacks Consensus Estimate of $2.9 billion indicates an increase of 6.7% from the year-ago reported quarter.
Insurance Consulting and Technology revenues are likely to have benefited from software sales and increased project revenues.
Increased compensation survey sales, executive compensation and other reward-based advisory services, including pay transparency work and change communication services, are likely to have favored Career revenues.
New clients, increased compliance and other project activity in Outsourcing and growth from higher volumes, as well as placements of Life and Medicare Advantage in Individual Marketplace, are likely to have aided the Benefits Delivery & Outsourcing segment’s performance in the to-be-reported quarter.
Corporate Risk & Broking is likely to have delivered a favorable performance owing to strong new business, improved client retention and rate increases.
Expenses in the fourth quarter are likely to have increased, attributable to higher salaries and benefits, other operating expenses, restructuring costs, depreciation and amortization. The company’s margins are likely to have improved on higher savings from its transformation program. We expect the metric to increase 2.3% to $2 billion.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Willis Towers this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Willis Towers has an Earnings ESP of +0.23%. This is because the Most Accurate Estimate is pegged at $7.05, higher than the Zacks Consensus Estimate of $7.04. 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 at present.
Other Stocks to Consider
Some other insurance stocks with the right combination of elements to come up with an earnings beat this time around are:
Everest Group, Ltd. EG has an Earnings ESP of +1.18% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $14.63, indicating an increase of 19.8% from the year-ago reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
EG’s earnings beat estimates in three of the last four quarters while missing in one.
Arch Capital Group ACGL has an Earnings ESP of +1.24% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $1.94, implying a decline of 9.3% from the year-ago reported figure.
ACGL’s earnings beat estimates in each of the last four reported quarters.
Primerica, Inc. PRI: has an Earnings ESP of +0.44% and a Zacks Rank of 2 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $4.26, indicating an increase of 22.06% from the year-ago reported figure.
PRI’s earnings beat estimates in each of the last four reported quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Primerica, Inc. (PRI) : Free Stock Analysis Report
Willis Towers Watson Public Limited Company (WTW) : Free Stock Analysis Report
Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report
Everest Group, Ltd. (EG) : Free Stock Analysis Report
