Market Overview

Aon Earnings Preview: Analysts Expect Falling Revenue, Rising EPS Over Last Quarter

Aon (NYSE: AON) announces its next round of earnings this Friday, July 29, 2011. Get the latest predictions in Benzinga's essential guide to the company's second quarter earnings report.

Earnings and Revenue:

Analysts are looking ahead to a positive EPS of 82 cents per share and revenues of $2.74 billion. Whether the reported numbers beat or miss analysts' estimates, they will also be compared against last year's numbers for the same period, which were a profit of 80 cents per share on revenues of $1.9 billion. Can Aon manage the estimated 2.5% rise in EPS and 44.2% increase in revenues from the year-ago quarter as analysts are predicting? We'll have to wait until Friday to find out.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q1 Q4 Q3 Q2
EPS Estimate $0.80 $0.81 $0.66 $0.75
EPS Actual $0.80 $0.84 $0.61 $0.80

Stock Performance:

As of July 25, 2011, Aon's current share price was $50.29. Since January 1st, shares of Aon have given investors a return of 9.7%. For a full 12 months, the return has risen by 28.2%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

  • Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Aon is a Moderate Buy. The strength of this rating has stayed consistent over the past three months.

Competitors:

Wondering how Aon compares to rivals in the same sector? Here are a few of the company's peers.

  • Arthur J. Gallagher & (NYSE: AJG): Hold with a $0.16 recent quarter EPS
  • Brown & Brown (NYSE: BRO): Hold with a $0.26 recent quarter EPS
  • CNInsure (NASDAQ: CISG): Moderate Sell with a $0.25 recent quarter EPS
  • eHealth (NASDAQ: EHTH): Hold with a $0.09 recent quarter EPS

Aon is in the insurance brokerage industry, which has experienced price/earnings growth of 1.6%.

Finally, a description of the company's main areas of operation: Aon provides risk management and human capital consulting services, including insurance and reinsurance brokerage and workforce productivity solutions.

Take Action:

Now that you're fully prepared, get ready to take quick action if the company reports any numbers significantly different from those listed above. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

  • To see up-to-date news on Aon, click here
  • To see other trading ideas, click here
  • To see other company earnings recaps, click here

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