Aon Corporation Earnings Cheat Sheet: Revenue and Profits Rise

S&P 500 (NYSE:SPY) component Aon Corporation (NYSE:AON) reported higher profit for the second quarter as revenue showed growth. Aon Corp 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 Second Quarter

Results: Net income for the insurance broker rose to $258 million (75 cents per share) vs. $153 million (54 cents per share) in the same quarter a year earlier. This marks a rise of 68.6% from the year earlier quarter.

Revenue: Rose 47.7% to $2.81 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: AON reported adjusted net income of 83 cents per share. By that measure, the company beat the mean estimate of 82 cents per share. It beat the average revenue estimate of $2.74 billion.

Quoting Management: “We delivered solid organic revenue growth in our Retail Brokerage business while delivering on the synergy savings related to Aon Hewitt,” said Greg Case, president and chief executive officer. “While macro conditions remain challenging globally, we are firmly on track to deliver growth in 2011, our restructuring programs are delivering cost savings and we have solid financial flexibility that will continue to drive increased shareholder value, as highlighted by the repurchase of $303 million of common stock in the quarter.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 38.2% and in the fourth quarter of the last fiscal year, the figure rose 16.7%.

Revenue has now gone up for three straight quarters. In the first quarter, revenue rose 45.3% to $2.78 billion while the figure rose 40.5% in the fourth quarter of the last fiscal year from the year earlier.

The company beat estimates last quarter after being in line with expectations in the first quarter with net income of 80 cents per share.

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 American Insurance Group (NYSE:AIG).

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(Source: Xignite Financials)

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