Towers Watson Q4 Profit Edges Down, But EPS Rises; Guides Q1 - Quick Facts

(RTTNews) - Towers Watson & Co. (TW) reported that its fourth-quarter net income attributable to common stockholders edged down to $82.39 million from $82.88 million last year. But earnings per share improved to $1.17 from $1.16 in the same quarter last year.

Adjusted earnings per share from continuing operations were $1.34 up from $1.32 in the year ago quarter. Analysts polled by Thomson Reuters expected the company to report earnings of $1.25 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter grew to $878.99 million from $835.28 million in the prior year. Wall Street analysts had a consensus revenue estimate of $850.80 million. On an organic basis, which excludes the impact of changes in foreign currency exchange rates, acquisitions and divestitures, revenues increased 3% from the prior year fourth quarter.

For the first quarter of fiscal year 2015, the company expects to report revenues in the range of $840 million to $860 million, reflecting constant currency revenue growth in the range of 2% to 5%. The company expects adjusted earnings per share in the range of $1.17 to $1.22. This guidance assumes an average exchange rate of 1.68 U.S. dollars to the British Pound and 1.34 U.S. dollars to the Euro for the first quarter of fiscal year 2015. Analysts expect the company to report earnings of $1.32 per share and revenues of $856.03 million for the first-quarter.

The company noted that it will provide fiscal year 2015 guidance at its Analyst Day on September 19, 2014.