Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of professional-services company Towers Watson
So what: Earnings per share of $1.37 crushed analysts' estimates of $1.08 in the fiscal third quarter. As a result, the company increased full-year earnings-per-share guidance to a range of $4.40 to $4.43, from $4.07 to $4.15 previously.
Now what: The company's merger last year is proving to be more profitable than anyone expected at this juncture. Management pointed to organic revenue growth that's driving better results this quarter, a great sign for any company. I think shares have plenty of room to run, given the higher-than-expected growth and improved guidance.
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