LONDON - Willis Towers Watson (NASDAQ:WTW), a leading global advisory, broking, and solutions company, reported mixed financial results for the first quarter ended March 31, 2024.
The company's adjusted diluted earnings per share (EPS) of $3.29 slightly surpassed analyst expectations by $0.04, marking a 16% increase from the previous year's first quarter. However, WTW's revenue of $2.34 billion for the quarter fell short of the consensus estimate of $2.37 billion, despite a reported 4% increase from the $2.24 billion recorded in the same quarter last year.
The company's organic growth for the quarter was 5%, and the adjusted operating margin saw a significant improvement, rising 200 basis points to 20.6% from the prior year. WTW's CEO, Carl Hess (NYSE:HES), attributed the solid first-quarter results to strategic execution and strong demand for the company's industry-leading solutions, which drove organic growth and solid margins. He also highlighted the company's disciplined approach to capital allocation, including $101 million of share repurchases during the quarter.
Looking forward, WTW provided full-year 2024 guidance, projecting an adjusted diluted EPS range of $15.40 to $17.00, which sits below the analyst consensus of $16.29. The company also forecasts full-year revenue to reach at least $9.9 billion, compared to the consensus estimate of $10.008 billion. Despite the lower guidance, WTW remains confident in its ability to deliver on its commitments, backed by strategic growth initiatives and operating efficiency.
In terms of segments, the Health, Wealth & Career (HWC) division reported a 4% increase in revenue, reaching $1.34 billion, and the Risk & Broking (R&B) segment saw an 8% increase to $978 million. Both segments experienced organic growth and improved operating margins, with the HWC segment benefiting from the expansion of its Global Benefits Management client portfolio and the R&B segment driven by strong client retention and new business activity.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.