Aon Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Aon (NYSE:AON) will unveil its latest earnings on Friday, October 26, 2012. 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 89 cents per share, a rise of 29% 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 92 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 90 cents during the last month. Analysts are projecting profit to rise by 26.4% versus last year to $4.16.

Last quarter, the company came in at profit of $1.02 per share against a mean estimate of net income of $1.01 per share, beating estimates after missing them in the previous quarter. In the first quarter, it missed forecasts by 8 cents.

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Stock Price Performance: Between July 27, 2012 and October 22, 2012, the stock price rose $3.38 (6.9%), from $49.32 to $52.70. The stock price saw one of its best stretches over the last year between August 6, 2012 and August 17, 2012, when shares rose for 10 straight days, increasing 5.9% (+$2.96) over that span. It saw one of its worst periods between November 11, 2011 and November 23, 2011 when shares fell for nine straight days, dropping 9.2% (-$4.41) over that span.

A Look Back: In the second quarter, profit fell 4.7% to $246 million (73 cents a share) from $258 million (75 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 1.6% to $2.83 billion from $2.79 billion.

Wall St. Revenue Expectations: Analysts predict a rise of 2.6% in revenue from the year-earlier quarter to $2.79 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 52.3% in the third quarter of the last fiscal year, 3.2% in the fourth quarter of the last fiscal year and 2.3% in the first quarter before increasing again in the second quarter.

The company is trying to use this earnings announcement to rebound from income declines in the past two quarters. Net income dropped 3.3% in the first quarter and then again in the second quarter.

Analyst Ratings: With eight analysts rating the stock as a buy, none rating it as a sell and eight rating it as a hold, there are indications of a bullish outlook.

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

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