Willis Towers (WLTW): What's In Store This Earnings Season?
Zacks Investment Research | Nov 02, 2016 09:00PM ET
Willis Towers Watson Public Limited Company (NASDAQ:WLTW) is slated to report third-quarter 2016 results on Nov 4, before the market opens. Last quarter, the company posted a positive earnings surprise of 4.40%. Let’s see how things are shaping up for this announcement.
Factors to be Considered this Quarter
Willis Towers is likely to witness a rise in operating expenses this time around, which might lead to contraction of operating margins in the to-be-reported quarter.
Moreover, the company’s initiatives to boost inorganic growth led to lower-than-expected earnings accretion, which is likely to weigh on overall results.
In addition, the company’s restructuring costs are likely to have gone up in the third quarter owing to the process of implementing the Operational Improvement Program. Also, interest expenses are likely to have increased, owing to increase in debt level.
However, Willis Towers’ core strengths as well as strategic acquisitions should support top-line improvement. Costs and tax synergies should also support results. Also, continued share buy back should aid the bottom line.
With respect to the surprise trend, the company delivered positive surprises in two of the last four quarters, but with an average miss of 3.57%.
WILLIS TWRS WAT Price and EPS Surprise
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