Aon Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Aon (NYSE:AON) will unveil its latest earnings tomorrow, Friday, February 1, 2013.  Aon provides risk management and human capital consulting services, including insurance and reinsurance brokerage and workforce productivity solutions.

Aon Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.25 per share, a rise of 28.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.28. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.25 during the last month. For the year, analysts are projecting profit of $4.20 per share, a rise of 27.7% from last year.

Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported net income of 95 cents per share against a mean estimate of profit of 91 cents, and the quarter before, the company exceeded forecasts by one cent with net income of $1.02 versus a mean estimate of profit of $1.01.

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A Look Back: In the third quarter, profit rose 3% to $204 million (62 cents a share) from $198 million (59 cents a share) the year earlier, exceeding analyst expectations. Revenue remained steady at $2.73 billion.

Here’s how Aon traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:


Wall St. Revenue Expectations: Analysts predict a rise of 2.7% in revenue from the year-earlier quarter to $3.07 billion.

Analyst Ratings: There are mostly holds on the stock with 11 of 17 analysts surveyed giving that rating.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 3.2% in the fourth quarter of the last fiscal year, 2.3% in the first quarter and 1.6%in the second quarter before dropping in the third quarter.

Last quarter’s earnings rise was a switch from preceding drops, so the upcoming earnings announcement is a chance to build on last quarter’s result. After net income declines in the first quarter and second quarter, profit rose in the third quarter.

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