Willis Towers Watson (WLTW) Tops Q3 EPS by 3c, Revenues Beat

Willis Towers Watson (NASDAQ: WLTW) reported Q3 EPS of $1.33, $0.03 better than the analyst estimate of $1.30. Revenue for the quarter came in at $2.01 billion versus the consensus estimate of $1.99 billion.

• Revenue1 for the quarter increased 1% to $2.0 billion with flat constant currency revenue
• Year-to-date cash flows from operating activities were $1.2 billion, up 95% compared to $620 million in the prior year
• Year-to-date free cash flow was $1.0 billion, up 130% compared to $445 million in the prior year
• Diluted Earnings per Share were $0.93 for the quarter, up 60% over prior year
• Adjusted Diluted Earnings per Share were $1.33 for the quarter, up 2% over prior year
• Income from Operations was $73 million or 3.6% of revenue, down 180 basis points over the prior year quarter
• Adjusted Operating Income was $238 million or 11.8% of revenue, up 20 basis points over the prior year quarter

“I am very pleased with the Company’s financial results for the third quarter and year to date. Despite the challenging operating environment brought on by the COVID-19 pandemic, we delivered solid margins, strong free cash flow growth, and adjusted EPS growth,” said John Haley, Willis Towers Watson’s chief executive officer. “The third quarter results are reflective of our prudent cost-management and liquidity preservation efforts. Though there is looming uncertainty around the duration and severity of business disruptions, I am encouraged by the resilience we have demonstrated to date, and we remain confident in our ability to drive improvements and deliver value for our clients and shareholders.”

2020 Guidance Update

Due to the uncertainties caused by the COVID-19 pandemic, Willis Towers Watson previously withdrew (and consequently fully disclaimed) its full-year 2020 guidance. We continue to be unable to predict the extent of the impact of the COVID-19 pandemic, and remain focused on maintaining a strong balance sheet, liquidity, and financial flexibility.

For earnings history and earnings-related data on Willis Towers Watson (WLTW) click here.

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