UPDATE: Towers Watson FQ4 Profit Beats Estimates

Towers Watson TW reported better-than-expected fiscal fourth-quarter earnings. The New York-based company posted quarterly income from continuing operations of $82 million, versus $80 million, in the year-ago period. Diluted earnings per share from continuing operations rose 4% to $1.17, while adjusted diluted earnings per share from continuing operations gained 2% to $1.34. Its total revenue rose 5% to $879 million from $835 million. On an organic basis, revenue surged 3%. However, analysts were expecting earnings of $1.25 per share on revenue of $850.80 million. The Benefits segment's revenue rose 3% to $508 million, while the Risk and Financial Services segment revenue surged 10% to $161 million. The Talent and Rewards segment revenue fell 1% to $131 million, while the Exchange Solutions segment revenue climbed 48% to $51 million. Its adjusted EBITDA rose to $169 million, from $161 million. “We were very pleased with the fourth quarter results and ending the fiscal year on such a strong note” said John Haley, chief executive officer. Towers Watson projects first quarter revenue of $840 million to $860 million and adjusted earnings of $1.17 to $1.22 per share. Analysts expected earnings of $1.33 per share on revenue of $857.75 million. Towers Watson shares gained 1.65% to close at $104.27 yesterday.