Towers Watson lifts forecast as revenues rise
PROFESSIONAL services company Towers Watson posted better-than-expected quarterly results yesterday on higher revenue from its benefits segment, and raised its full-year profit outlook.
Towers Watson, whose London offices specialise in reinsurance, reported third-quarter earnings of $68.2m (£42.1m), down from $69.2m a year earlier.
Revenue rose four per cent to $901.5m.
In the firm’s benefits business, revenues rose two per cent to $520m despite a “modest decline” in Europe, the Middle East and Africa.
Costs rose, however, with expenses linked to providing services up four per cent to $792.6m as salaries and admin costs drifted higher.
The company, which was formed after the $4bn merger between Watson Wyatt Worldwide and Towers Perrin Forster & Crosby in 2010, now expects full-year earnings of $5.14 per share to $5.19 per share, up from its prior outlook of $5.05 per share to $5.15 per share.
It also forecast 2012 revenue of around $3.45bn.
Shares of the company, which has a market value of $4.66bn, closed down one per cent at $64.68. They have risen seven per cent in the last three months.
Chief executive John Haley listed “continued uncertainty in the European markets… and balancing the investments necessary to maintain our growth plans while maintaining margin stability” as the main issues facing the firm this year.