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Mar 31, 2021
Willis Towers Watson Q1 2021 Earnings Report
Willis Towers Watson had a strong start to the year with encouraging first quarter results.
Key Takeaways
Willis Towers Watson reported a strong first quarter with revenue growth, meaningful margin expansion, and strong earnings-per-share growth. Revenue was $2.59 billion, a 5% increase compared to the same period in the prior year. Net income attributable to Willis Towers Watson was $733 million, an increase of 140% from the prior-year first quarter. Diluted earnings per share were $5.63 and adjusted diluted earnings per share were $3.64.
Revenue was $2.59 billion for the first quarter of 2021, an increase of 5% as compared to $2.47 billion for the same period in the prior year.
Income from operations for the first quarter was $452 million, or 17.5% of revenue, an increase of 290 basis points compared to the first quarter of the prior year.
Net income attributable to Willis Towers Watson for the first quarter of 2021 was $733 million, an increase of 140% from $305 million for the prior-year first quarter.
For the quarter, diluted earnings per share were $5.63 and adjusted diluted earnings per share were $3.64.
Forward Guidance
We continue to expect that the COVID-19 pandemic will negatively impact our revenue and operating results for 2021.
Challenges Ahead
- The extent to which COVID-19 continues to impact our business and financial position will depend on future developments, which are difficult to predict, including the severity and scope of the COVID-19 pandemic as well as the types of measures imposed by governmental authorities to contain the virus or address its impact and the duration of those actions and measures.
- We continue to expect that the COVID-19 pandemic will negatively impact our revenue and operating results for 2021.
- During 2020 and through the first quarter of 2021, the COVID-19 pandemic had a negative impact on revenue growth, particularly in our businesses that are discretionary in nature, but otherwise it generally did not have a material impact on our overall results.
- Some of our discretionary, project-based businesses saw a reduction in demand, and additional negative impacts on our revenue and operating results may lag behind the developments thus far related to the COVID-19 pandemic.
- In light of the effects on our own business operations and those of our clients, suppliers and other third parties with whom we interact, the Company has considered, and will continue to consider, the impact of COVID-19 on our business, as appropriate, taking into account our business resilience and continuity plans, financial modeling and stress testing of liquidity and financial resources.
Historical Earnings Impact
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