Willis Towers Watson (NASDAQ:WTW) will release its quarterly earnings report on Thursday, 2025-04-24. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate Willis Towers Watson to report an earnings per share (EPS) of $3.25.
Willis Towers Watson bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
Overview of Past Earnings
In the previous earnings release, the company beat EPS by $0.10, leading to a 0.11% increase in the share price the following trading session.
Here's a look at Willis Towers Watson's past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 8.03 | 2.71 | 2.33 | 3.27 |
| EPS Actual | 8.13 | 2.93 | 2.55 | 3.29 |
| Price Change % | 0.0% | -1.0% | 2.0% | -2.0% |
Market Performance of Willis Towers Watson's Stock
Shares of Willis Towers Watson were trading at $324.68 as of April 22. Over the last 52-week period, shares are up 26.8%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Analysts' Perspectives on Willis Towers Watson
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Willis Towers Watson.
The consensus rating for Willis Towers Watson is Buy, derived from 4 analyst ratings. An average one-year price target of $363.75 implies a potential 12.03% upside.
Comparing Ratings with Competitors
The following analysis focuses on the analyst ratings and average 1-year price targets of Brown & Brown, Baldwin Insurance and Abacus Global Management, three prominent industry players, providing insights into their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Brown & Brown, with an average 1-year price target of $120.0, suggesting a potential 63.04% downside.
- Analysts currently favor an Neutral trajectory for Baldwin Insurance, with an average 1-year price target of $41.0, suggesting a potential 87.37% downside.
- Analysts currently favor an Outperform trajectory for Abacus Global Management, with an average 1-year price target of $11.5, suggesting a potential 96.46% downside.
Insights: Peer Analysis
The peer analysis summary outlines pivotal metrics for Brown & Brown, Baldwin Insurance and Abacus Global Management, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Willis Towers Watson | Buy | 4.15% | $1.67B | 16.15% |
| Brown & Brown | Neutral | 12.04% | $506M | 3.21% |
| Baldwin Insurance | Neutral | 14.86% | $44.98M | -3.42% |
| Abacus Global Management | Outperform | 40.16% | $29.49M | -5.35% |
Key Takeaway:
Willis Towers Watson ranks at the top for Gross Profit and Return on Equity among its peers. In terms of Revenue Growth, it is in the middle.
Discovering Willis Towers Watson: A Closer Look
Willis Towers Watson PLC is an advisory, broking, and solutions company that provides data-driven, insight-led solutions in the areas of people, risk, and capital. The company's segments include Health, Wealth & Career (HWC) and Risk & Broking (R&B). The HWC segment provides an array of advice, broking, solutions and technology for employee benefit plans, institutional investors, compensation and career programs, and employee experience overall. It focuses on four key areas: Health, Wealth, Career and Benefits Delivery & Outsourcing. The R&B segment provides risk advice, insurance brokerage and consulting services to clients ranging from small businesses to multinational corporations. Its R&B segment includes two businesses: Corporate Risk & Broking and Insurance Consulting and Technology.
Willis Towers Watson's Economic Impact: An Analysis
Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.
Revenue Growth: Over the 3 months period, Willis Towers Watson showcased positive performance, achieving a revenue growth rate of 4.15% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.
Net Margin: Willis Towers Watson's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 41.05%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Willis Towers Watson's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 16.15%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Willis Towers Watson's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.54% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.75.
To track all earnings releases for Willis Towers Watson visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.