Aon Earnings: Everything You Must Know Now

Aon Corporation (NYSE:AON) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Aon Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 8.82% to $1.11 in the quarter versus EPS of $1.02 in the year-earlier quarter.

Revenue: Rose 2.26% to $2.9 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Aon Corporation reported adjusted EPS income of $1.11 per share. By that measure, the company met the mean analyst estimate of $1.11. It missed the average revenue estimate of $2.91 billion.

Quoting Management: “Our second quarter results reflect organic growth across each of our major segments, continued margin improvement in Risk Solutions, twenty percent growth in free cash flow and the repurchase of $225 million of ordinary shares in the quarter,” said Greg Case, president and chief executive officer. “Our solid financial performance has absorbed significant investments made in areas such as the Global Risk Insight Platform and in healthcare exchanges, strengthening our industry-leading platform for long-term growth, strong free cash flow generation and increased financial flexibility.”

Key Stats (on next page)…

Revenue decreased 0.92% from $2.92 billion in the previous quarter. EPS were the same at $1.11 as the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.04 and has not changed. For the current year, the average estimate has moved down from a profit of $4.71 to a profit of $4.69 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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