UPDATE 3-Watson Wyatt Q4 profit beats Street; sees strong FY10

jueves 13 de agosto de 2009 20:35 CEST
 

* Q4 adj EPS $0.80 vs est $0.70 * Rev down 13 pct

* Sees Q1 adj EPS $0.68 to $0.73

* Sees Q1 rev at $385-$400 mln * Shares jump 11 pct (Recasts, adds conference call details, analyst comments, updates share movement)

By Divya Sharma

BANGALORE, Aug 13 (Reuters) - Watson Wyatt Worldwide Inc WW.N, a human resource and consultancy services provider, posted a better-than-expected quarterly profit, helped by lower expenses, and forecast fiscal 2010 profit above market estimates, sending its shares up 11 percent.

Watson Wyatt expects about $8 million to $10 million in merger costs in the first quarter of fiscal 2010, a company executive said on a conference call with analysts.

Watson Wyatt said in June it planned to take over Towers Perrin Forster & Crosby to create the biggest human resources consultancy in the world, a deal that analysts say could trigger further acquisitions in the sector. [ID:nBNG496470]

"It's a very interesting transaction that makes sense strategically because these companies have a lot of overlap but also a significant opportunity for cross selling into each other's customer bases," SunTrust Robinson Humphrey analyst Tobey Sommer said.

"There is a lot of earnings power a couple of years down the road after the merger is consummated."   Continuación...