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Aon Third Quarter Earnings Preview
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AON
Aon (NYSE:AON) will release its third quarter results on Friday, October 26, 2012. Analysts are expecting the company to report a profit of 89 cents a share, up from 69 cents a year ago.
Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: Surprising Earnings Results
What to Expect: The consensus estimate for Aon's earnings is 89 cents per share, up 29% from a year ago when the company reported earnings of 69 cents per share.
This is a drop from the consensus estimate three months ago of 92 cents. Analysts are projecting earnings of $4.16 per share for the fiscal year.
Aon is expected to report revenue of $2.79 billion for the quarter, beating last year's figure of $2.73 billion by 2.2%. The anticipated revenue for the fiscal year is $11.57 billion.
Company Performance: Revenue has risen for four consecutive quarters now. It rose 1.6% in the second quarter, 2.3% in the first quarter, 3.2% in the fourth quarter of the last fiscal year and 52.3% in the third quarter of the last fiscal year.
AON's P/E ratio of 18.5 is consistent with the industry average. Price/earnings ratios (P/E ratios) provide a measure of the relative value of a stock. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: How To Find P/E And PEG Ratios
Over the past quarter, the stock price has risen to $52.70 from $46.14 on July 25, 2012. Aon's best recent streak was when its price gained $2.38 per share between September 26, 2012 and October 5, 2012.
The Competition: Aon provides risk management and human capital consulting services, including insurance and reinsurance brokerage and workforce productivity solutions. Eight of 16 analysts rate Aon a hold.
The company's closest competitor in the insurance (miscellaneous) industry is Marsh (MMC). Analysts are less optimistic about Aon than about Marsh. Twelve out of 16 analysts rate the latter a buy compared to eight of 16 for the former.
Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: Surprising Earnings Results
What to Expect: The consensus estimate for Aon's earnings is 89 cents per share, up 29% from a year ago when the company reported earnings of 69 cents per share.
This is a drop from the consensus estimate three months ago of 92 cents. Analysts are projecting earnings of $4.16 per share for the fiscal year.
Aon is expected to report revenue of $2.79 billion for the quarter, beating last year's figure of $2.73 billion by 2.2%. The anticipated revenue for the fiscal year is $11.57 billion.
Company Performance: Revenue has risen for four consecutive quarters now. It rose 1.6% in the second quarter, 2.3% in the first quarter, 3.2% in the fourth quarter of the last fiscal year and 52.3% in the third quarter of the last fiscal year.
Over the past quarter, the stock price has risen to $52.70 from $46.14 on July 25, 2012. Aon's best recent streak was when its price gained $2.38 per share between September 26, 2012 and October 5, 2012.
The Competition: Aon provides risk management and human capital consulting services, including insurance and reinsurance brokerage and workforce productivity solutions. Eight of 16 analysts rate Aon a hold.
The company's closest competitor in the insurance (miscellaneous) industry is Marsh (MMC). Analysts are less optimistic about Aon than about Marsh. Twelve out of 16 analysts rate the latter a buy compared to eight of 16 for the former.
by
Investopedia Staff
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