Willis Towers (WTW) to Report Q3 Earnings: What to Expect?
Willis Towers Watson Public Limited Company WTW is set to report third-quarter 2023 earnings on Oct 26, before market open. The insurer posted a negative earnings surprise in the last reported quarter.
Factors at Play
Revenues in the third quarter are likely to have benefited from higher organic commissions and fees, solid customer retention levels and growth of new business. The Zacks Consensus Estimate of $2.1 billion indicates an increase of 6.4% from the year-ago reported quarter.
Insurance Consulting and Technology revenues are likely to have benefited from higher sales in Technology Solutions and increased project activity.
Higher demand for reward-based advisory services and increased compensation survey participation are likely to have favored Career revenues, comprising Work & Rewards and Employee Experience businesses.
Solid individual marketplace, driven by higher volumes and placements of Medicare Advantage and life policies as well as increased project activity in outsourcing, is likely to have aided Benefits Delivery & Outsourcing performance in the to-be-reported quarter.
Corporate Risk & Broking is likely to have delivered a favorable performance owing to solid new business, client retention and solid contributions from organic growth at specialty lines like Marine, Financial Solutions and large and complex P&C.
Expenses in the quarter to be reported are likely to have increased attributable to higher salaries and benefits, other operating expenses, restructuring costs, depreciation and amortization. The company’s margins are expected to have improved on higher savings from its transformation program. We expect the metric to increase 3.2% to $1.9 billion.
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 -0.03%. 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
Here are three insurance stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Arch Capital Group ACGL has an Earnings ESP of +1.37% and a Zacks Rank of 2. The Zacks Consensus Estimate for third-quarter 2023 earnings is pegged at $1.48, indicating an increase of 428.6% from the year-ago reported figure.
ACGL’s earnings beat estimates in the last four reported quarters.
W.R. Berkley Corporation WRB has an Earnings ESP of +1.39% and a Zacks Rank #3. The Zacks Consensus Estimate for third-quarter 2023 earnings is pegged at $1.14, indicating an increase of 12.9%.
WRB’s earnings beat estimates in three of the last four reported quarters and missed in one.
American Financial Group AFG has an Earnings ESP of +0.41% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter 2023 earnings stands at $2.47, implying an increase of 10.3% from the year-ago reported quarter.
AFG’s earnings beat estimates in three of the last four reported quarters and missed in one.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
W.R. Berkley Corporation (WRB) : Free Stock Analysis Report
American Financial Group, Inc. (AFG) : Free Stock Analysis Report
Willis Towers Watson Public Limited Company (WTW) : Free Stock Analysis Report
Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report
