Willis Towers Watson Public Limited Company WTW is slated to report first-quarter 2025 earnings on April 24, before market open. The insurer delivered an earnings surprise in each of the last four quarters, the average beat being 6.29%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Factors at Play

Revenues in the first quarter are likely to have benefited from strong performances across all the segments. The Zacks Consensus Estimate of $2.31 billion indicates a decrease of 1.1% from the year-ago reported quarter.

Increased project work and brokerage income in North America and the continued expansion of Global Benefits Management client portfolio in International and Europe are likely to have aided the Organic revenue growth in Health in the to-be-reported quarter.

Wealth business revenues are likely to have benefited from higher levels of Retirement work globally, an increase in the Investments business due to the growth of the LifeSight solution and capital market improvements.

Increased advisory services and product revenues are expected to have favored Career revenues.

Benefits Delivery & Outsourcing segment’s performance is likely to have been affected by moderating growth in the TRANZACT business in the to-be-reported quarter.

Corporate Risk & Broking is expected to have benefited from higher levels of new business activity and strong client retention.

Expenses in the first quarter are likely to have increased, attributable to higher incentive costs and salary expense, losses on professional liability claims and higher non-income-related tax expense, increased consulting and compensation costs related to the Transformation program. We expect the metric to decrease 2.8% to $2 billion. 

The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $3.23, indicating a decrease of 1.8% from the year-ago reported figure. 

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Willis Towers this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This is not the case, as you can see below.

Earnings ESP: Willis Towers has an Earnings ESP of -3.06%. This is because the Most Accurate Estimate of $3.13 is pegged lower than the Zacks Consensus Estimate of $3.23. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Willis Towers carries a Zacks Rank of 4 (Sell) at present.

Stocks to Consider

Some insurance stocks with the right combination of elements to come up with an earnings beat this time around are:

Brown & Brown, Inc. BRO has an Earnings ESP of +0.77% and a Zacks Rank of 2 at present. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at $1.30, indicating an increase of 14% from the year-ago reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.

BRO’s earnings beat estimates in each of the last four quarters.

Arch Capital Group Ltd. ACGL has an Earnings ESP of +2.28% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at $1.37, indicating a decline of 44% from the year-ago reported figure. 

ACGL’s earnings beat estimates in each of the last four quarters.

American Financial Group, Inc. AFG has an Earnings ESP of +1.04% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at $2.17, indicating a decrease of 21.3% from the year-ago reported figure. 

AFG’s earnings beat estimates in one of the last four quarters while missing in the other three.

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American Financial Group, Inc. (AFG) : Free Stock Analysis Report

Brown & Brown, Inc. (BRO) : Free Stock Analysis Report

Willis Towers Watson Public Limited Company (WTW) : Free Stock Analysis Report

Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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