Insurers Q4 Earnings Preview For Feb 8: AIG, AIZ, HIG, WLTW

 | Feb 06, 2018 09:11PM ET

The fourth-quarter earnings season is in full swing, with 251 members of the elite S&P 500 index having already reported financial numbers so far. Per the latest Will California Fire & Commercial Unit Hurt AIG Q4 Earnings? )

The Zacks Consensus Estimate for earnings of 87 cents per share for the yet-to-be-reported quarter reflects a 3.6% year-over-year increase. AIG carries a Zacks Rank #3 (Hold) that increases the predictive power of ESP.

However, it’s .

American International Group, Inc. Price and EPS Surprise

Hartford Financial Services Group, Inc. (The) Quote

Willis Towers Watson Public Limited Company (NASDAQ:WLTW) is an advisory, broking and solutions company based in London, UK.

Willis Towers’ operating expenses have been rising over the last several quarters. This resulted in the contraction of operating margins. Expenses increased nearly 2% in the third quarter of 2017. Willis Towers also estimates about $10 million of expense from currency-hedging programs in the fourth quarter of 2017. Such high expenses might weigh on the margins.

Organic growth in commissions and fees that form the major component of Willis has increased in the first nine months of 2017 and the trend is expected to be seen in the to-be-reported quarter, given its solid customer retention levels and growing new business.

Moreover, the company’s strong balance sheet enables disciplined share buyback that should provide an extra cushion to its earnings.

The Zacks Consensus Estimate for earnings of 74 cents per share for the yet-to-be-reported quarter reflects a 31.5% year-over-year decline. Willis Towers carries a Zacks Rank #5 (Strong Sell) and an Earnings ESP of +0.63%.

We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Willis Towers Watson Public Limited Company Price and EPS Surprise

Willis Towers Watson Public Limited Company Quote

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