Willis Towers Watson Public Limited Company Price and EPS Surprise

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Willis Towers Watson Public Limited Company WTW is set to report third-quarter 2022 earnings on Oct 27, before market open. The brokerage insurer delivered an earnings surprise in each of the last four quarters, the average being 5.82%.

Factors at Play

Willis Towers’ third-quarter revenues are likely to have witnessed the impact of increased advisory work, new software sales, growth in Medicare Advantage revenues, expansion of local portfolios and lower expenses.

The Zacks Consensus Estimate for revenues is pegged at $2 billion, indicating an increase of 0.6% from the year-ago quarter.

Risk and Broking is expected to have benefited from new software sales, increased advisory work and global lines of business, most notably in Aerospace, Natural Resources and FINEX.

In the third quarter, the wealth businesses are likely to have gained from new client acquisition and strong market demand for specialist work in response to market volatility and legislative change. Career businesses, comprising Work & Rewards and Employee Experience businesses, are likely to have improved, given the strong client demand for advisory work, data products and software licenses.

Health revenues in the third quarter are likely to have benefited from additional consulting work in North America, continued expansion of local portfolios and global benefits management appointments outside of North America.

Growth in Benefits Delivery & Outsourcing is likely to have been driven by the individual marketplace and a rise in Medicare Advantage revenues in direct-to-consumer business.

Expenses in the quarter to be reported are likely to have decreased due to lower salaries and benefits, depreciation, amortization, and decreases in transaction and transformation costs.

Continued share buybacks are anticipated to have provided an additional boost to the bottom line.

The Zacks Consensus Estimate for earnings per share is pegged at $2.14, suggesting an increase of 23.7% from the year-ago reported figure.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Willis Towers this time. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which is not the case here.

Earnings ESP: Willis Towers has an Earnings ESP of -0.58%. This is because the Most Accurate Estimate is pegged at $2.13, lower than the Zacks Consensus Estimate of $2.14. 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. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Some insurance stocks also with the right combination of elements to come up with an earnings beat this time around are:

EverQuote, Inc. EVER has an Earnings ESP of +6.10% and a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter 2022 earnings is pegged at a loss of 41 cents, implying a decline of 127.8% from the figure reported in the year-ago quarter.

EverQuote beat earnings estimates in three of the last four reported quarters while missing the same in one.

Trean Insurance Group, Inc. TIG has an Earnings ESP of +11.11% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter 2022 earnings is pegged at 9 cents, indicating a decrease of 40% from the year-ago reported figure.

TIG’s beat earnings estimates in one of the last four reported quarters while missing the same in the other two and matched in one.

Enact Holdings, Inc. ACT has an Earnings ESP of +1.69% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter 2022 earnings stands at 89 cents, indicating an increase of 5.9% from the year-ago reported figure.

Enact Holdings’ earnings beat estimates in each of the four trailing quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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EverQuote, Inc. (EVER): Free Stock Analysis Report
 
Willis Towers Watson Public Limited Company (WTW): Free Stock Analysis Report
 
Enact Holdings, Inc. (ACT): Free Stock Analysis Report
 
Trean Insurance Group, Inc. (TIG): Free Stock Analysis Report
 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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