CORRECTED – CORRECTED-UPDATE 2-Towers Watson third-quarter earnings top esti

(Corrects to make clear that the company’s earnings beat
estimates, not missed)

* Q3 adj shr $0.92 vs. est. $0.81

* Sees Q4 adj shr $0.76-$0.81 vs. est $0.81

* Sees Q4 rev $755 mln-$780 mln vs. est $791.8 mln (Adds
details; background)

BANGALORE, May 12 (BestGrowthStock) – Towers Watson and Co (TW.N: )
posted quarterly results that beat expectations helped by
strong margins, but guided fourth-quarter revenue below
estimates.

The consulting firm, which was formed by the $4 billion
merger of Towers Perrin Forster & Crosby and Watson Wyatt
Worldwide Inc, posted results for the first time after the
merger in January.

For the third quarter ended March 31, 2010, the company
posted earnings of $9.4 million, or 12 cents a share. The
results include merger-related costs and other one-time items.

The company posted earnings of 92 cents a share, compared
with analysts’ expectations of 81 cents a share, according to
Thomson Reuters I/B/E/S.

Revenue was $804 million, lower than analysts’ expectations
of $813 million.

Revenue at the benefits segment, which is the company’s
largest unit, was $470 million. The segment had a 32 percent
margin for the quarter.

“Slight declines in revenues from retirement and technology
and administration solutions were offset in part by an increase
in revenues from health and group benefits,” the company said
in a statement.

Towers Watson, which competes with consultancies such as
Hewitt Associates (HEW.N: ) and the Mercer subsidiary of Marsh &
McLennan Companies (MMC.N: ), forecast fourth-quarter earnings of
76 cents to 81 cents a share, on revenue of $755 million to
$780 million.

Analysts were expecting earnings of 81 cents a share on
revenue of $791.8 million.

Shares of the company were up 1 percent at $48 Wednesday on
the New York Stock Exchange.

Stock Market Research

(Reporting by Amulya Nagaraj in Bangalore; Editing by
Saumyadeb Chakrabarty)

CORRECTED – CORRECTED-UPDATE 2-Towers Watson third-quarter earnings top esti