Towers Watson Posts Higher Profit In Q4 - Update

(RTTNews) - Professional services company Towers Watson & Co. (TW) Wednesday reported a higher fourth-quarter profit, as revenues climbed 6 percent amid a particularly difficult economic environment.

For the fourth quarter, net income attributable to controlling interests increased to $82.88 million or $1.16 per share, from $65.34 million or $0.91 per share in the prior year. Adjusted earnings per share for the recent quarter totaled $1.36.

On average, 10 analysts polled by Thomson Reuters expected the company to earn $1.27 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter rose 6 percent to $875.32 million from $826.16 million last year. Analysts expected revenues of $874.89 million for the quarter. On an organic basis, which excludes the impact of changes in foreign currency exchange rates, acquisitions and divestitures, revenues were up 4 percent from last year.

Benefits segment revenues grew 5 percent to $494.42 million. Meanwhile, Risk and Financial Services segment posted revenues of $186.09 million, down 6 percent from a year earlier. Revenues from Talent & Rewards edged up 1 percent.

For fiscal 2013, net income attributable to controlling interests climbed to $318.81 million or $4.46 per share from $260.21 million or $3.59 per share in the previous year. Annual revenues grew 5 percent to $3.6 billion from $3.42 billion a year earlier.

Looking ahead, for the first quarter of fiscal 2014, the company expects adjusted earnings per share to be in the range of $1.15 to $1.20.

Revenues are expected to be between $850 million to $870 million. Analysts expect the company to report first-quarter profit per share of $1.20, on revenue of $869.14 million.

The company said its full fiscal 2014 guidance will be provided at its Analyst Day on September 20.

TW closed Tuesday's regular trading at $87.07 on the NYSE.