WILLIS TOWERS WATSON Reports Fourth Quarter 2022 Earnings Results for Fiscal Year Ending February 9, 2023

Earnings Overview

On February 9, 2023, the end of its fiscal year 2022, WILLIS TOWERS WATSON ($NASDAQ:WTW) reported total revenue of USD 0.6 billion for the fourth quarter, a decrease of 75.4% from the same quarter the year prior. Net income for the quarter was USD 2.7 billion, a slight increase of 0.4% from the prior year.

Transcripts Simplified

Willis Towers Watson had a positive year in 2023 and finished the fourth quarter with organic revenue growth of 5%. Adjusted diluted earnings per share were $6.33, an increase of 12% over the prior year. The Health, Wealth, and Career segment generated organic revenue growth of 5%, with Wealth experiencing 5% growth and Career experiencing 9% growth.

Benefits Delivery and Outsourcing had 6% growth, and Technology and Administrative Solutions experienced increased client appointments and project activity. HWC’s operating margin was 39% for this quarter compared to 38.2% in the prior year fourth quarter.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for WTW. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for WTW. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for WTW. More…

Key Ratios Snapshot

Some of the financial key ratios for WTW are shown below. More…

Market Price

On Thursday, the company’s stock opened at $257.0, but closed at $239.0, representing a 7.1% drop from the previous day’s closing price of 257.1. This marks a significant decrease from the stock’s previous performance and provides insight into the company’s financial performance over the past year. Overall, WILLIS TOWERS WATSON showed a decrease in both earnings and revenue in its fourth quarter 2022 report. Despite this, the company was able to maintain a solid return on invested capital and operating margin, indicating that it may still have potential for future growth. Live Quote…

Analysis

As part of our analysis of WILLIS TOWERS WATSON’s wellbeing, GoodWhale created a Star Chart which gave the company an overall health score of 8/10. This suggests that WILLIS TOWERS WATSON is in a strong position and should be able to safely ride out any crisis without the risk of bankruptcy. Looking deeper, WILLIS TOWERS WATSON scored highly in dividend and medium in asset, growth, and profitability. This makes it a ‘cow’ type of company, which has a track record of paying out consistent and sustainable dividends. Given the strength of WILLIS TOWERS WATSON’s dividends and its overall health score, investors looking for steady, reliable returns may be particularly interested in the company. More…

Peers

Willis Towers Watson PLC is a leading global professional services firm that helps organizations manage risk and improve performance. The company has over 40,000 employees in more than 120 countries. Willis Towers Watson PLC is publicly traded on the New York Stock Exchange (NYSE: WLTW).

The company’s competitors include Argentum 47 Inc, Just Group PLC, and Marsh & McLennan Companies Inc. These companies are also leaders in the global professional services industry.

– Argentum 47 Inc ($OTCPK:ARGQ)

Argentum 47 Inc is a company that provides software development services. The company has a market cap of 310.86k and an ROE of 33.4%. The company’s services include web development, mobile development, cloud computing, and data analytics.

– Just Group PLC ($LSE:JUST)

Just Group PLC is a financial services company that focuses on providing retirement income products and services to the UK market. The company has a market cap of 625.21M as of 2022 and a Return on Equity of -2.59%. Just Group’s products and services are designed to help customers achieve a comfortable retirement. The company offers a variety of retirement income products, including annuities, income drawdown plans, and equity release products. Just Group also provides advice and guidance to customers on retirement planning.

– Marsh & McLennan Companies Inc ($NYSE:MMC)

Marsh & McLennan Companies, Inc., a professional services firm, provides advice and solutions in the areas of risk, strategy, and people worldwide. It operates through two segments, Risk and Insurance Services, and Consulting. The Risk and Insurance Services segment provides risk management solutions, such as risk advice, risk transfer, and risk control and mitigation solutions, as well as insurance program management services and insurance brokerage services. This segment serves commercial, public sector, and private clients. The Consulting segment offers various economic, organizational, and technological consulting services in the areas of customer experience, operations, digital, technology, finance and accounting, and strategy and mergers and acquisitions. This segment serves large companies, governmental entities, and not-for-profit organizations. The company was founded in 1871 and is headquartered in New York, New York.

Summary

WILLIS TOWERS WATSON recently released their earnings report for the fourth quarter of fiscal year 2022, revealing a total revenue of USD 0.6 billion, down 75.4% year-over-year. Net income was reported to be USD 2.7 billion, a slight increase of 0.4% year-over-year. As a result, the stock price dropped on the same day.

Investors should consider the short-term financial performance of WILLIS TOWERS WATSON in light of its long-term prospects. Analyzing factors such as market conditions, technological advancements, and management decisions can help investors make informed decisions about whether to buy, hold, or sell this stock.