Towers Watson Tops Q1 Expectations

reported better-than-expected results for its fiscal first quarter on Monday. The Arlington, Virginia-based company posted quarterly net income of $123.4 million, or $1.78 per share, compared to $81.6 million, or $1.16 per share, in the year-ago quarter. Excluding items, the company's adjusted earnings came in at $1.49 per share. Its total revenue rose 2 percent year-over-year to $895.6 million from $878.1 million. However, analysts were expecting a profit of $1.34 per share on revenue of $881.54 million. Towers Watson's revenue at the Benefits segment slipped 4 percent to $448 million, while revenue at the Exchange Solutions segment climbed 37 percent to $118 million. Revenue at the Risk and Financial Services segment dropped 7 percent year-over-year to $138 million in the latest quarter, while revenue at the Talent and Rewards segment rose 5 percent to $160 million. Adjusted EBITDA climbed to $183 million from $171 million. "I'm very pleased with our strong first quarter results and the client focus our associates continue to exhibit while integration planning is well underway," said John Haley, Towers Watson's chief executive officer. "This is an exciting time for all of us at Towers Watson. Our business is performing well, and we can all be proud of the organization we've built over the last several years. However, it's even more exciting to envision the value we can bring to our clients, associates and shareholders with the creation of Willis Towers Watson." Towers Watson shares fell 0.40 percent to close at $123.56 on Friday.