WILLIS TOWERS WATSON Reports Fourth Quarter Earnings Results for FY2022 on February 9, 2023

Earnings Overview

On February 9 2023, WILLIS TOWERS WATSON ($NASDAQ:WTW) released their earnings results for the fourth quarter of FY2022, which ended on December 31 2022. Despite a decrease of 75.4% compared to the same quarter from the previous year, total revenue was USD 0.6 billion. However, their reported net income surprisingly increased by 0.4%, amounting to USD 2.7 billion.

Transcripts Simplified

Willis Towers Watson reported strong financial results for the fourth quarter and the full year of 2022. Organic revenue grew 5% in the fourth quarter and 4% for the full year. Adjusted diluted earnings per share were $6.33 in the fourth quarter and $13.41 for the full year, representing 12% and 16% growth, respectively. The Health, Wealth and Career (HWC) segment generated a 5% organic revenue growth in the fourth quarter, with Health flat and Wealth and Career growing 5% and 9%, respectively.

Benefits Delivery and Outsourcing grew 6%, while Technology and Administrative Solutions increased primarily due to new client appointments and increased 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…

Price History

On Thursday, February 9, 2023, WILLIS TOWERS WATSON reported its financial results for FY2022. At the start of the day, the stock opened at $257.0 and closed at $239.0, a drop of 7.1% from the previous trading day’s closing price of $257.1. The stock price movement was a result of the earnings announcement and market sentiment.

WILLIS TOWERS WATSON’s stock performance reflected this mixed news and investors remain skeptical about the company’s future performance. Analysts will be closely watching the company’s financial performance in the coming months to see if the company can continue to deliver on its financial goals and remain competitive in its sector. Live Quote…

Analysis

At GoodWhale, we conducted an analysis of WILLIS TOWERS WATSON’s financials and found that their health score, according to our Star Chart, was 8/10 with regard to cashflows and debt. This means that WILLIS TOWERS WATSON is capable of paying off debt and funding future operations. Our analysis also found that WILLIS TOWERS WATSON is strong in dividend, and medium in asset, growth, and profitability. Based on these findings, we classified the company as a ‘cow’, indicating that the company has a track record of paying out consistent and sustainable dividends. Investors who are looking for steady returns with a minimum of risk may be interested in investing in WILLIS TOWERS WATSON due to their strong dividend and cashflow history. Furthermore, the company has a strong track record of paying out stable and reliable dividends, making it an attractive option for investors who value safety and stability. 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 reported their fourth quarter of FY2022 financials on February 9 2023, revealing a 75.4% decrease in total revenue relative to the prior year period. Nevertheless, net income grew by 0.4% to USD 2.7 billion. The stock price dropped on the same day.

Investors should take note of the potential risks associated with the company’s decreased revenue, in addition to the potential upside of their increased net income. Analysts should watch for any changes in the company’s financial results to determine whether or not investing in Willis Towers Watson is a good decision.