Greg Case, President and CEO, said,
"We delivered twenty-three percent earnings growth in the fourth quarter driven by organic revenue growth and strong operating margin improvement in both segments, a lower effective tax rate and effective capital management. Results reflect a strong finish to 2014..."
Net income attributable to shareholders grew to $459 million or $1.56 per share from $355 million or $1.44 per share in the comparable quarter last year.
Adjusted earnings were $1.89 per share, while it totaled $1.54 per share a year earlier. On average, twenty-four analysts polled by Thomson-Reuters estimated earnings to be $1.86. Analysts' estimates typically exclude one-time items.
Revenues rose 3 percent to $3.30 billion from $3.21 billion last year, driven primarily by 6 percent organic revenue growth, partially offset by a 3 percent unfavorable impact from foreign currency translation. Analysts expected revenue of $3.35 billion.
In the Risk Solutions business, total revenue was fractionally higher, amid a 3 percent organic growth in commissions and fees and a 1 percent rise in commissions and fees resulting from acquisitions, net of divestitures.
HR Solutions' revenue increased 8 percent to $1.3 billion owing to a 10 percent organic growth in commissions and fees.
Operating expenses slid 1 percent to $2.7 billion due primarily to a favorable impact from foreign currency translation, decreases in formal restructuring costs and intangible asset amortization.
The stock closed up 0.6 percent on Thursday at $93.72.
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