Watson Wyatt Worldwide 1Q profit rises 2 percent

ARLINGTON, Va. - Consulting firm Watson Wyatt Worldwide Inc. said Wednesday its fiscal first-quarter profit increased 2 percent due primarily to revenue growth in its benefits and technology and administration solutions groups.

Net income for the quarter ended Sept. 30 rose to $35.2 million, or 82 cents per share, from $34.4 million, or 77 cents per share, during the same quarter last year.

Revenue increased 6 percent to $426.1 million from $401.7 million during the year-ago period. Revenue increased across all of Watson Wyatt's business segments, helping to increase profitability during the quarter.

Analysts polled by Thomson Reuters, on average, forecast earnings of 81 cents per share for the quarter on revenue of $429 million.

Watson Wyatt's benefits group accounted for the majority of first-quarter revenue. Benefits group revenue increased 5 percent to $238 million during the quarter largely due to increased demand for retirement services.

Technology and administration solutions accounted for the largest revenue growth as the segment generated an 18 percent increase in revenue. Watson Wyatt's technology and administration solutions revenue increased to $48 million from $40 million during the year-ago quarter.

Watson Wyatt shares added 45 cents to $42 in premarket trading.

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