NASDAQ$WTW

Willis Towers Watson Public Limited Company · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported financial results for the second quarter ended June 30, 2023.

WTW reported a 6% increase in revenue to $2.16 billion, driven by strong organic revenue growth. However, net income decreased by 16% to $96 million, and adjusted EBITDA decreased by 9% to $411 million due to headwinds from prior-year book sales, inflationary conditions, and investment costs.

  • Revenue increased by 6% to $2.16 billion compared to the prior year.
  • Net Income decreased by 16% to $96 million compared to the prior year.
  • Adjusted EBITDA decreased by 9% to $411 million, representing 19.0% of revenue.
  • The company repurchased $350 million of WTW shares during the quarter.

Headline financials

Total Revenue

$2.16B

Previous: $2.03B+6.3%
EPS (adj)

$2.05

Previous: $2.32-11.6%
Organic revenue growth

7.0%

Previous: 3.0%+133.3%
Free Cash Flow

$94M

Previous: $109M-13.8%
Net Income

$94M

Previous: $109M-13.8%
Operating Income

$142M

Previous: $137M+3.6%
Gross Profit

$2.02B

Previous: $1.86B+8.3%
Cash & Equivalents

$1.6B

Previous: $1.92B-16.6%
Total Assets

$28.8B

Previous: $32.5B-11.5%
Stock-Based Comp

$32M

Previous: $25M+28.0%

Revenue & EPS history

Willis Towers Watson · Revenue · Quarterly

$2.16B

Q2 2023+6.3%vs Q2 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Willis Towers Watson · $2.12B total across 2 segments · Q2 2023

  • Health, Wealth & Career
    $1.22B+5.2%
  • Risk & Broking
    $900M+5.6%

Forward guidance

The Company is updating its 2024 financial targets as set forth in the table below to account for an expected decline in pension income of approximately $1.65 per share. The change also accounts for an expected increase in the adjusted income tax rate and further investments in talent and other strategic initiatives to support long-term growth in Risk & Broking relative to the initial targets set in 2021.

Tailwinds

  • Transformation Program success
  • Increasing its 2024 target of total annualized run-rate savings to $380 million
  • Investments in talent
  • Investments in other strategic initiatives
  • Support long-term growth in Risk & Broking

Headwinds

  • Decline in pension income of approximately $1.65 per share
  • Expected increase in the adjusted income tax rate
  • Further investments in talent
  • Further investments in other strategic initiatives
  • To support long-term growth in Risk & Broking

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.1%

Avg return

Earnings day

-0.0%

Avg return

5 days after

+1.1%

Avg return

30 days after

45%

29 / 65 earnings

Positive

+10.2%

Q3 2023

Best reaction

-10.2%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.8%-10.6%-14.0%
Q4 2025+5.3%+4.2%-5.1%
Q3 2025-0.1%+1.7%+1.1%
Q1 2025-5.7%-7.1%-5.1%
Q4 2024-3.1%-1.5%-0.1%
Q3 2024+2.0%+4.9%+9.7%
Q2 2024+6.0%+6.5%+5.4%
Q1 2024-5.1%-5.0%-4.3%
Q4 2023+8.5%+8.5%+9.5%
Q3 2023+10.2%+13.6%+17.6%
Q2 2023-10.2%-8.7%-11.7%
Q1 2023-2.6%-4.3%-7.0%
Q4 2022-4.8%-6.1%-10.2%
Q3 2022+4.9%+4.9%+15.7%
Q2 2022+1.8%+1.1%+2.3%
Q1 2022-7.8%-8.1%-7.8%
Q4 2021-3.1%-6.2%-4.8%
Q3 2021+0.8%-1.3%-4.7%
Q2 2021+3.5%+5.9%+12.8%
Q1 2021+5.3%+6.9%+6.3%
Q4 2020-0.0%+0.8%-1.5%
Q3 2020-5.9%-6.9%+8.1%
Q2 2020-0.1%-2.6%-2.1%
Q1 2020+4.6%+8.3%+15.8%
Q4 2019-4.5%-3.2%-9.2%
Q3 2019-0.7%-2.7%+3.3%
Q2 2019-0.7%-4.4%+0.2%
Q1 2019-3.2%-3.1%-4.8%
Q4 2018+0.9%+2.9%+1.7%
Q3 2018+7.9%+10.6%+11.4%
Q2 2018-6.5%-5.0%-7.5%
Q1 2018+3.0%+4.3%+4.0%
Q4 2017-3.3%-1.3%+4.3%
Q3 2017-0.8%+0.4%+0.6%
Q2 2017+0.5%+0.5%-0.5%
Q1 2017+7.6%+6.0%+9.8%
Q4 2016+0.9%+1.8%+4.1%
Q3 2016-4.8%-4.6%-3.0%
Q2 2016-2.8%-1.8%+2.0%
Q1 2016-3.3%
Q4 2015-3.3%
Q3 2015-1.9%
Q2 2015-1.8%
Q1 2015+0.5%
Q4 2014-0.3%
Q3 2014+2.9%
Q2 2014+0.1%
Q1 2014+3.4%
Q4 2013+0.6%
Q3 2013-0.1%
Q2 2013-2.1%
Q1 2013-0.4%
Q4 2012+1.1%
Q3 2012-2.6%
Q2 2012+0.1%
Q1 2012+0.2%
Q4 2011-0.5%
Q4 2009-0.5%
Q4 2010-0.5%
Q3 2011-0.6%
Q2 2011-0.7%
Q1 2011+1.2%
Q3 2010-0.1%
Q1 2010+1.8%
Q2 2010+1.8%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro