This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Towers Watson Reports Strong Second Quarter Earnings

Exchange Solutions

Exchange Solutions’ economic model drives very different seasonality of financial results than our general consulting and brokerage business and impacts year over year comparisons. The Exchange Solutions business incurs significant costs in the first half of the fiscal year to enroll new members, while commission revenues are recognized over the annual policy period. Most policies have an effective date of January 1. Exchange Solutions decreased the company’s diluted earnings per share by $0.18 and adjusted diluted earnings per share by $0.12, including the interest charges associated with financing the Extend Health acquisition.

For the quarter, the Exchange Solutions segment had revenues of $16 million, net of deferral revenue required by purchase accounting rules. For the quarter, on a proforma basis, excluding the impact of the $5 million deferred revenue write-off from the acquired balance sheet required by purchase accounting rules, revenues grew by 33%. The Exchange Solutions segment had a net operating loss of $10 million and an NOI margin of (64%) for the quarter. The second half of the fiscal year is seasonally stronger due to the timing of enrollments.

Outlook for Fiscal 2013

For fiscal 2013, the company expects to report revenues in the range of $3.60 billion to $3.65 billion, reflecting constant currency revenue growth in the range of 6% to 7%, and adjusted diluted earnings per share in the range of $5.28 to $5.38. This guidance assumes an average exchange rate of 1.60 U.S. dollars to the British Pound and 1.30 U.S. dollars to the Euro for fiscal 2013.

For the third quarter of fiscal 2013, the company expects to report revenues in the range of $940 million to $960 million, reflecting constant currency revenue growth in the range of 4% to 6%, and adjusted diluted earnings per share in the range of $1.46 to $1.51.

3 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.19 0.00%
FB $118.06 0.00%
GOOG $695.70 0.00%
TSLA $222.56 0.00%
YHOO $36.00 0.00%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs