WTW reported strong revenue growth of 6% and increased operating margins across all segments

From GlobeNewswire: 2024-10-31 06:00:00

WTW (NASDAQ: WTW) reported a 6% increase in revenue to $2.3 billion for the third quarter of 2024, showing organic growth of 6%. Diluted Loss per Share was $16.44, while Adjusted Diluted Earnings per Share rose by 31% to $2.93. Operating Margin was (33.5)%, but Adjusted Operating Margin improved to 18.1% from the prior year. The company continues to see strong revenue growth and operating leverage, driven by investments in talent and technology.

For the Health, Wealth & Career (HWC) segment, revenue increased 4% to $1.33 billion, with operating margins up 90 basis points to 24.7%. In the Risk & Broking (R&B) segment, revenue rose 10% to $940 million, with operating margins up 240 basis points to 18.1%. The company expects to deliver revenue of $9.9 billion or more for the full year 2024, with adjusted operating margin between 23.0% – 23.5% and adjusted diluted earnings per share of $16.00 – $17.00.

Cash flows from operating activities were $913 million for the nine months ended September 30, 2024, compared to $823 million for the prior year. Free cash flow for the same period was $807 million, up $100 million from the prior year. The company repurchased $205 million of outstanding shares during the quarter. Adjusted EBITDA for the third quarter was $501 million, representing 21.9% of revenue, a 15% increase from the prior year.

In summary, WTW had a strong quarter with revenue growth of 6%, driven by the success of its Transformation program. Despite a diluted loss per share, Adjusted Diluted Earnings per Share increased by 31%. Operating margins improved, with the HWC segment showing 4% revenue growth and R&B segment growing revenue by 10%. The company is on track to meet its full-year targets for 2024.



Read more at GlobeNewswire:: WTW Reports Third Quarter 2024 Earnings