Aon plc Poised for Q4 Earnings: Analysts Expect Growth
Jan. 31 Earnings Preview: Aon plc, based in Dublin, Ireland, is gearing up to announce its fiscal Q4 earnings before market opening on January 31. With a market capitalization of $78.1 billion, Aon is a prominent player in professional services, focusing on risk management, insurance and reinsurance brokerage, as well as human capital solutions.
Profit Predictions: Analysts forecast a profit of $4.24 per share, reflecting a 9% increase from $3.89 per share in the same quarter last year. Historically, Aon has a mixed record, having exceeded Wall Street estimates in one of the last four quarters while falling short in the other three. Notably, it surpassed the consensus earnings-per-share (EPS) estimate by 11% in its latest quarter.
Future Earnings Outlook: For fiscal 2024, analysts anticipate Aon to generate an EPS of $15.43, rising 9.1% from $14.14 in fiscal 2023. Looking ahead to fiscal 2025, EPS is expected to increase by 12.6%, reaching around $17.38.
Stock Performance Review: In the last 52 weeks, Aon’s stock has gained 20.4%, trailing behind the S&P 500 Index’s ($SPX) 24.9% return and the Financial Select Sector SPDR Fund’s (XLF) 33.1% increase during the same timeframe.
Strong Q3 Performance: On October 25, shares of Aon surged 5.2% following its impressive Q3 2024 results. The company reported adjusted EPS of $2.72, exceeding analyst estimates, alongside revenue of $3.7 billion, a 26% rise year-over-year. This growth was fueled by solid organic revenue performance in its Commercial Risk, Wealth, and Reinsurance Solutions segments, instilling confidence among investors. Aon also reported an adjusted operating margin of 24.6%, which marks a 30 basis point improvement year-over-year, alongside ongoing benefits from its Aon United Restructuring program, aimed at generating $350 million in annual savings by 2026.
Analysts Weigh In: The consensus among analysts is cautiously optimistic, with a “Moderate Buy” rating for Aon stock. Out of 22 analysts, the recommendations include seven “Strong Buys,” one “Moderate Buy,” 11 “Holds,” one “Moderate Sell,” and two “Strong Sells.” This outlook reflects a more positive shift compared to the five “Strong Buy” ratings reported a month ago.
As of this writing, AON trades below the average analyst price target of $387.21.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more details, please view the Barchart Disclosure Policy here. More news from Barchart
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