Aon Corp Earnings: Profits Climb By Double Figures Again

S&P 500 (NYSE:SPY) component Aon Corporation (NYSE:AON) reported its results for the fourth quarter. 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 Fourth Quarter

Results: Net income from continuing operations for Aon Corporation rose to $277 million (82 cents per share) vs. $232 million (67 cents per share) in the same quarter a year earlier. This marks a rise of 19.9% from the year earlier quarter.

Revenue: Rose 3% to $2.99 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: Aon Corporation reported adjusted net income of 97 cents per share. By that measure, the company beat the mean estimate of 96 cents per share. Analysts were expecting revenue of $3 billion.

Quoting Management: “Our fourth quarter results reflect 15 percent growth in earnings as highlighted by organic growth across all major businesses and the continued 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 improved growth in 2012, our restructuring programs will deliver cost savings and we have solid financial flexibility that will drive increased shareholder value, as highlighted by the repurchase of $828 million of common stock in 2011.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 37.5% and in the second quarter, the figure rose 68.6%.

Revenue has risen the past four quarters. Revenue increased 52.3% to $2.73 billion in the third quarter. The figure rose 46.5% in the second quarter from the year earlier and climbed 45.3% in the first quarter from the year-ago quarter.

The company topped expectations last quarter after falling short of forecasts in the third quarter with net income of 69 cents versus a mean estimate of net income of 73 cents per share.

Looking Forward: Over the past ninety days, the average estimate for the first quarter of the next fiscal year has fallen from 88 cents per share to 86 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is $3.28 per share, down from $3.31 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com