Willis Towers Watson Surpasses Third Quarter Expectations, Shares Rise

LONDON - Willis Towers Watson (NASDAQ:WTW) reported adjusted earnings per share and revenue that exceeded analyst expectations in the third quarter, causing the company's shares to rise by 0.5% in pre-market trading on Thursday. The global consulting and brokerage firm announced adjusted earnings of $2.93 per share, surpassing the consensus estimate of $2.72. Revenue increased by 6% year-over-year to $2.3 billion, slightly exceeding the $2.28 billion forecast. WTW's CEO, Carl Hess, stated, "We had another strong quarter fueled by revenue growth, operational leverage, and the success of our Transformation program. Our 6% revenue growth this quarter is a testament to our value proposition resonating in the market and the success of our investments in talent and technology." The company's Health, Wealth & Career segment recorded 4% organic revenue growth, while Risk & Broking showed 10% organic growth. WTW reported a net loss of $1.67 billion for the quarter. This figure included over $1 billion in non-cash losses and impairment charges related to the pending sale of the TRANZACT business. Willis Towers Watson anticipates revenue of $9.9 billion or higher for the full year of 2024 and adjusted earnings per share in the range of $16.00 to $17.00. The midpoint of the earnings per share guidance is slightly above the current analyst consensus of $16.47. The company indicated that it is on track to achieve approximately $450 million in cumulative annual savings from the Transformation program by the end of 2024.