- Willis Towers’ 1Q adjusted EPS surpassed estimates, coming in at $3.29 versus the anticipated $3.23.
- The company reported revenue of $2.34 billion, slightly under the estimated $2.37 billion.
- The firm’s health, wealth, and career revenue was $1.34 billion, somewhat below the expected $1.36 billion.
- Risk and broking revenue stood out at $978 million, beating the estimate of $972.1 million.
- Risk and broking organic growth also outperformed expectations, reaching an 8% increase compared to the forecasted 6.82% growth.
- The company’s adjusted operating margin was a robust 20.6%, exceeding the predicted 19.9%.
- The health, wealth, and career segment’s operating margin climbed by 25.1%, surpassing the estimate of 24.5%.
- Risk and broking operating margin was at 20.8%, slightly below the anticipated 21.4%.
- Willis Towers noted a negative free cash flow amounting to $9 million.
- Looking ahead, the company intends to deliver an adjusted operating margin of 22.5% – 23.5% in the full year 2024.
- They also predict revenue of $9.9 billion or more and mid-single digit organic revenue growth for the same period.
- The company expects non-cash pension income to be approximately $88 million in 2024.
- For the full year 2024, they anticipate delivering adjusted diluted earnings per share in the range of $15.40 – $17.00.
- The company’s successful strategic execution and strong demand for its market-leading solutions has driven organic growth, solid margins, and impressive earnings per share.
- Currently, the stock has 11 “buy” ratings, 9 “holds”, and 1 “sell”.
A look at Willis Towers Watson Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to Smartkarma Smart Scores, Willis Towers Watson’s long-term outlook appears positive. With a growth score of 4 and momentum score of 4, the company seems to be performing well in terms of expansion and market dynamics. The strong growth score indicates that Willis Towers Watson is positioned for future success and may experience significant development in the coming years. Additionally, the momentum score suggests that the company has good traction and is gaining speed in the market.
Although the value, dividend, and resilience scores are moderate at 2 each, the high growth and momentum scores bode well for Willis Towers Watson’s overall outlook. As a company that operates in advisory, broking, and solutions services for insurance and risk management, Willis Towers Watson seems to be on a path of steady progress and potential success in the long run, catering to a global customer base with its diverse range of offerings.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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