Towers Watson Q4 Profit Edges Down, Yet EPS Up - Update

(RTTNews) - Professional services company Towers Watson & Co. (TW) Tuesday reported a marginal decrease in the fourth-quarter profit, reflecting an income from discontinued operations in the prior year. Meanwhile, earnings per share improved from last year. Revenues were up 5 percent over the prior year.

For the fourth quarter, the company's net income attributable to common stockholders edged down to $82.39 million from $82.88 million last year. Meanwhile, 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, while the firm posted $1.32 per share in the year-ago quarter.

On average, 11 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.

The prior year recorded an income from discontinued operations of $0.04 per share.

Revenues for the quarter grew 5 percent to $878.99 million from $835.28 million in the prior year. Wall Street analysts' revenue consensus was $850.80 million.

On an organic basis, which excludes the impact of changes in foreign currency exchange rates, acquisitions and divestitures, revenues increased 3 percent from the prior-year fourth quarter.

Looking ahead, for the first quarter, the company expects adjusted earnings per share to be in the range of $1.17 to $1.22.

The firm 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 percent. Analysts expect the company to report earnings of $1.32 per share, on 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.

TW closed Monday's regular trading at $104.27, up 1.65 percent.