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Is a Beat in the Cards for Willis Towers (WTW) in Q2 Earnings?

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Willis Towers Watson Public Limited Company (WTW - Free Report) is set to report second-quarter 2024 earnings on Jul 25, before market open. The insurer delivered an earnings surprise in three of the last reported quarters while missing in one.

Factors at Play

Revenues in the second quarter are likely to have benefited from strong performances across all the segments and the increasing impact of ongoing investments in talent and technology. The Zacks Consensus Estimate of $2.26 billion indicates an increase of 4.8% from the year-ago reported quarter.
Insurance Consulting and Technology revenues are likely to have gained from software sales and increased project revenues.

Wealth business revenues are likely to have benefited from higher levels of Retirement work in North America and Europe.

Increased project work in Employee Experience and Work & Rewards are expected to have favored Career revenues.

Higher volumes and placements of Medicare Advantage and life policies in the Individual Marketplace are likely to have aided the Benefits Delivery & Outsourcing segment’s performance in the to-be-reported quarter.

Corporate Risk & Broking is expected to have delivered a favorable performance owing to strong client retention across all geographies and higher levels of new business activity.

Expenses in the second quarter are likely to have increased, attributable to higher salary expenses, higher benefit costs, increased marketing expenses and consulting and compensation costs related to the Transformation program. We expect the metric to increase 4.1% to $2 billion. 

The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $2.28, indicating an increase of 11.2% from the year-ago reported figure.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Willis Towers this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: Willis Towers has an Earnings ESP of +1.85%. This is because the Most Accurate Estimate is pegged at $2.33, higher than the Zacks Consensus Estimate of $2.28. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Willis Towers carries a Zacks Rank of 3 at present.

Other Stocks to Consider

Some other insurance stocks with the right combination of elements to come up with an earnings beat this time around are:

Arthur J. Gallagher & Co. (AJG - Free Report) has an Earnings ESP of +0.16% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $2.24, indicating a year-over-year increase of 17.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.

AJG’s earnings beat estimates in each of the last four reported quarters.

Marsh & McLennan Companies, Inc. (MMC - Free Report) has an Earnings ESP of +2.36% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $1.61, indicating a year-over-year increase of 2.5%. 

MMC’s earnings beat estimates in each of the last four reported quarters.

Reinsurance Group of America, Incorporated (RGA - Free Report) has an Earnings ESP of +2.81% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $4.94, indicating a year-over-year increase of 12.2%. 

RGA’s earnings beat estimates in each of the last four reported quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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