Aon Sees Both Profit and Revenue Increase

Sales growth helped Aon (NYSE: AON) boost profit in the third quarter. What accounts for the company's robust revenue this quarter? Let's take a look behind the numbers and see what action you should take.

Earnings and Revenue:
Aon's revenues topped Wall Street's expectations, though the company's EPS fell short of predictions. The company reported adjusted net income of 69 cents/share versus the 73 cents/share estimate and revenues of $2.7 billion versus the $2.66 billion estimate. Revenue climbed 50.7% from the same period last year.
Last quarter marked the third in a row of rising net income. Aon's revenue has grown during each of the past four quarters on a year-over-year basis.

Income:
For the year, Aon reported net income of $3.16/share. The company fell short of analysts' projections of $3.17/share. According to the reported number, the company's income rose 37.5% from last year's levels.

Conference Call:
The conference call for third quarter earnings can be accessed here.

Official Comment:
"Our third quarter results reflect 13 percent growth in earnings as highlighted by strong performance in our Risk segment and the delivery of synergy savings related to Aon Hewitt," said Greg Case, president and chief executive officer. "While macro economic conditions remain challenging globally, we are firmly on track to deliver growth in 2011, our restructuring programs continue to deliver cost savings and we have solid financial flexibility that will continue to drive increased shareholder value, as highlighted by the repurchase of $175 million of common stock in the quarter."

Industry:
With price/earnings growth of 1.7%, Aon's industry, insurance brokerage, is expanding.

What to Do Next:
Those are the latest numbers from Aon, including how the announcement compared to Wall Street estimates. Benzinga consistently provides earnings previews and recaps for major corporate events. Be sure to visit us next quarter for a full Aon preview.

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