Will Willis Towers' (WTW) Beat Streak Continue in Q1 Earnings?
Willis Towers Watson Public Limited Company WTW is set to report first-quarter 2024 earnings on Apr 25, before market open. The insurer delivered an earnings surprise in three of the last reported quarters while missing in one.
Factors at Play
Revenues in the first quarter are likely to have benefited from the increasing impact of ongoing investments in talent and technology and strong performances across all the segments. The Zacks Consensus Estimate of $2.3 billion indicates an increase of 5.2% from the year-ago reported quarter.
Insurance Consulting and Technology revenues are likely to have benefited from software sales and increased project revenues.
Increased compensation survey sales and executive compensation and other reward-based advisory services are expected to have favored Career revenues.
Higher volumes, placements of Medicare Advantage and life policies in Individual Marketplace, as well as increased compliance and other project activity in Outsourcing, are likely to have aided the Benefits Delivery & Outsourcing segment’s performance in the to-be-reported quarter.
Corporate Risk & Broking is expected to have delivered a favorable performance owing to strong new business, improved client retention and rate increases.
Expenses in the first quarter are likely to have increased, attributable to higher salaries and benefits, other operating expenses, restructuring costs, depreciation and amortization. The company’s margins are likely to have improved on higher savings from its transformation program. We expect the metric to increase 3.8% to $2 billion.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Willis Towers this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Willis Towers has an Earnings ESP of +1.03%. This is because the Most Accurate Estimate is pegged at $3.25, higher than the Zacks Consensus Estimate of $3.21. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Willis Towers Watson Public Limited Company Price and EPS Surprise
Willis Towers Watson Public Limited Company price-eps-surprise | Willis Towers Watson Public Limited Company Quote
Zacks Rank: Willis Towers carries a Zacks Rank of 3 at present.
Other Stocks to Consider
Some other insurance stocks with the right combination of elements to come up with an earnings beat this time around are:
Cincinnati Financial Corporation CINF has an Earnings ESP of +5.06% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at $1.58, indicating a year-over-year increase of 77.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
CINF’s earnings beat estimates in each of the last four reported quarters.
Axis Capital Holdings AXS has an Earnings ESP of +1.56% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at $2.68, indicating a year-over-year increase of 15%.
AXS’ earnings beat estimates in each of the last four reported quarters.
Allstate Corporation ALL has an Earnings ESP of +5.69% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at $3.95, implying an increase of 403.8% from the year-ago reported figure.
ALL’s earnings beat estimates in three of the last four reported quarters while missing once.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Cincinnati Financial Corporation (CINF) : Free Stock Analysis Report
The Allstate Corporation (ALL) : Free Stock Analysis Report
Axis Capital Holdings Limited (AXS) : Free Stock Analysis Report
Willis Towers Watson Public Limited Company (WTW) : Free Stock Analysis Report
