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With a market cap of over $27 billion, London-based Willis Towers Watson Public Limited Company (WTW) is an advisory and broking company offering data-driven solutions in people, risk, and capital to clients in 140 countries since 1828. It is expected to announce its fiscal Q2 earnings for 2024 before the market opens on Thursday, July 25.
Ahead of the event, analysts project Willis Towers Watson’s profit to reach $2.28 per share, up 11.2% from $2.05 per share reported in the year-ago quarter. The company has exceeded Wall Street’s EPS estimate in three of the four quarters while missing on one other occasion.
Its adjusted EPS for the last reported quarter increased 15.8% year over year to $3.29, beating the Wall Street estimates by 2.5%, driven by strategic execution and strong demand for industry-leading solutions, fueling organic growth and solid margins.
For fiscal 2024, analysts expect Willis Towers Watson to report an EPS of $16.27, up 12.3% from $14.49 in fiscal 2023. Its fiscal 2025 EPS is projected to grow 12.4% annually to $18.28.
WTW stock has gained 9.5% on a YTD basis, underperforming the S&P 500 Index’s ($SPX) 17.7% returns and S&P 500 Financials Sector SPDR’s (XLF) 12.7% gains over the same time frame.
After Willis Towers Watson’s Q1 earnings report on April 25, its stock dipped nearly 3%. The company faced challenges such as the impact of book of business activity, margin headwinds from foreign exchange, and strategic investments in talent and technology. Despite surpassing its bottom-line forecasts, Willis Towers Watson’s revenue surged 4.3% to $2.3 billion, missing projections by 1.4%.
However, the company also experienced tailwinds. Its exceptional solutions and productivity from new hires drove organic revenue growth of 5%, and transformation initiatives led to a 200-basis point margin expansion and adjusted EPS growth. The combination of strategic execution and high demand for industry-leading solutions fueled positive financial results.
The outlook for Willis Towers Watson stock leans moderately bullish, marked by a "Moderate Buy" consensus from analysts. Among 18 analysts covering the stock, eight recommend a "Strong Buy," two advise a "Moderate Buy," while the remaining eight suggest a "Hold" rating, reflecting confidence tempered with caution in the market sentiment.
The average analyst price target for Willis Towers Watson is $300.44, indicating a potential upside of 13.7% from the current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
