Towers Watson & Co. Earnings: What Investors Need to Know

Towers Watson & Co. (NYSE:TW) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

Towers Watson & Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 8.8% to $1.36 in the quarter versus EPS of $1.25 in the year-earlier quarter.

Revenue: Rose 5.95% to $875.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Towers Watson & Co. reported adjusted EPS income of $1.36 per share. By that measure, the company beat the mean analyst estimate of $1.27. It beat the average revenue estimate of $874.89 million.

Quoting Management: “The fourth quarter marked the end of a very strong fiscal year that resulted in revenue growth in all of our regions and strong underlying performance by the business in a particularly difficult economic environment,” said John Haley, chief executive officer. “This year also marked a few other key milestones; the completion of our integration efforts on time and on budget, the first year of operating Exchange Solutions with results well beyond our expectations and the introduction of OneExchange, our integrated health insurance exchange solution for active employees and retirees. The power of coming together across our multiple lines of business to develop services and offerings such as OneExchange or our bulk lump sum de-risking strategies, which are designed to meet our clients’ needs in a holistic manner, is clear. It’s even more exciting to think about our future growth potential as we’ve established the framework to capture the best of our intellectual capital.”

Key Stats (on next page)…

Revenue decreased 6.98% from $940.97 million in the previous quarter. EPS decreased 15% from $1.60 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.2 and has not changed. For the current year, the average estimate is a profit of $5.48, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)