Aon Corp Earnings Cheat Sheet: Profit Rises by Double-Figures for Fifth Consecutive Quarter

S&P 500 (NYSE:SPY) component Aon Corporation (NYSE:AON) reported higher profit for the third quarter as revenue showed growth. Aon provides risk management and human capital consulting services, including insurance and reinsurance brokerage and workforce productivity solutions.

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Aon Earnings Cheat Sheet for the Third Quarter

Results: Net income for Aon Corporation rose to $198 million (59 cents per share) vs. $144 million (51 cents per share) in the same quarter a year earlier. This marks a rise of 37.5% from the year earlier quarter.

Revenue: Rose 50.7% to $2.7 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: AON reported adjusted net income of 69 cents per share. By that measure, the company fell short of mean estimate of 73 cents per share. Analysts were expecting revenue of $2.66 billion.

Quoting Management: “Our third quarter results reflect 13 percent growth in earnings as highlighted by strong performance in our Risk segment and the delivery of synergy savings related to Aon Hewitt,” said Greg Case, president and chief executive officer. “While macro economic conditions remain challenging globally, we are firmly on track to deliver growth in 2011, our restructuring programs continue to deliver cost savings and we have solid financial flexibility that will continue to drive increased shareholder value, as highlighted by the repurchase of $175 million of common stock in the quarter.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 68.6% and in the first quarter, the figure rose 38.2%.

Revenue has risen the past four quarters. Revenue increased 46.5% to $2.79 billion in the second quarter. The figure rose 45.3% in the first quarter from the year earlier and climbed 40.5% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 83 cents versus a mean estimate of net income of 82 cents per share.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from $1.04 per share to $1.03, indicating that analysts are growing pessisimistic about the company’s performance next quarter. At $3.39 per share, the average estimate for the fiscal year has fallen from $3.41 ninety days ago.

Competitors to Watch: Arthur J. Gallagher & Co. (NYSE:AJG), Brown & Brown, Inc. (NYSE:BRO), Marsh & McLennan Companies, Inc. (NYSE:MMC), Willis Group Holdings PLC (NYSE:WSH), CNinsure Inc. (NASDAQ:CISG), Fortegra Financial Corp (NYSE:FRF), InsWeb Corporation (NASDAQ:INSW), eHealth, Inc. (NASDAQ:EHTH), and Life Exchange, Inc. (LFXG).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)