Free Annual Reports
Aon's Second Quarter Earnings Report
Tickers in this Article »
AON
Aon (NYSE:AON) announced its results for the second quarter on July 27, 2012. Aon provides risk management and human capital consulting services, including insurance and reinsurance brokerage and workforce productivity solutions.
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
The Numbers:
Aon's EPS outpaced analyst estimates while the company's revenues came in below predictions. The company reported adjusted net income of $1.02 per share versus the $1.01 per share estimate and revenues of $2.82 billion versus the $2.89 billion estimate. Revenue climbed 0.4% from the same period last year. The company's net income for the quarter was $246 million. This is a 4.7% decline from last year. This marks the second quarter in a row that the company's net income has fallen after profits tumbled 3.3% in the first quarter.
Management Quote:
"Our second quarter results reflect improved organic revenue growth across all of our major businesses as we make significant investments to further strengthen our client-serving capabilities," said Greg Case, president and chief executive officer.
"While macro conditions remain fragile globally, we continue to anticipate improved performance in the second half of the year, our underlying performance is on track with our long-term targets and we have completed significant steps to position the firm for long-term growth, strong free cash flow generation and increased financial flexibility as highlighted by the repurchase of $250 million of ordinary shares in the quarter."
A Look Back:
Net income has increased 23.6% year-over-year on average across the last five quarters. The biggest gain came in the second quarter of the last fiscal year, when income climbed 68.6% from the year-earlier quarter.
Looking Ahead:
Analysts appear increasingly negative about the company's results for the next quarter. The average estimate for the third quarter has moved down from 96 cents a share to 92 cents over the last 90 days. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. The average estimate for the fiscal year is $4.10 per share, down from $4.31 90 days 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
The Numbers:
Aon's EPS outpaced analyst estimates while the company's revenues came in below predictions. The company reported adjusted net income of $1.02 per share versus the $1.01 per share estimate and revenues of $2.82 billion versus the $2.89 billion estimate. Revenue climbed 0.4% from the same period last year. The company's net income for the quarter was $246 million. This is a 4.7% decline from last year. This marks the second quarter in a row that the company's net income has fallen after profits tumbled 3.3% in the first quarter.
Management Quote:
"Our second quarter results reflect improved organic revenue growth across all of our major businesses as we make significant investments to further strengthen our client-serving capabilities," said Greg Case, president and chief executive officer.
A Look Back:
Net income has increased 23.6% year-over-year on average across the last five quarters. The biggest gain came in the second quarter of the last fiscal year, when income climbed 68.6% from the year-earlier quarter.
Looking Ahead:
Analysts appear increasingly negative about the company's results for the next quarter. The average estimate for the third quarter has moved down from 96 cents a share to 92 cents over the last 90 days. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. The average estimate for the fiscal year is $4.10 per share, down from $4.31 90 days ago.
by
Investopedia Staff
Investopedia.com believes that individuals can excel at managing their financial affairs. As such, we strive to provide free educational content and tools to empower individual investors, including thousands of original and objective articles and tutorials on a wide variety of financial topics.
Free Annual Reports
