Earnings Preview For Aon

Aon AON is set to give its latest quarterly earnings report on Friday, 2024-10-25. Here's what investors need to know before the announcement.

Analysts estimate that Aon will report an earnings per share (EPS) of $2.48.

The market awaits Aon's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Historical Earnings Performance

In the previous earnings release, the company missed EPS by $0.15, leading to a 0.0% drop in the share price the following trading session.

Here's a look at Aon's past performance and the resulting price change:

Market Performance of Aon's Stock

Shares of Aon were trading at $358.29 as of October 23. Over the last 52-week period, shares are up 16.82%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Observations about Aon

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Aon.

The consensus rating for Aon is Neutral, based on 11 analyst ratings. With an average one-year price target of $351.91, there's a potential 1.78% downside.

Comparing Ratings with Peers

The analysis below examines the analyst ratings and average 1-year price targets of Arthur J. Gallagher, Marsh & McLennan and Brown & Brown, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Neutral trajectory for Arthur J. Gallagher, with an average 1-year price target of $289.4, indicating a potential 19.23% downside.
• For Marsh & McLennan, analysts project an Neutral trajectory, with an average 1-year price target of $233.8, indicating a potential 34.75% downside.
• The consensus outlook from analysts is an Neutral trajectory for Brown & Brown, with an average 1-year price target of $110.38, indicating a potential 69.19% downside.

Peer Metrics Summary

The peer analysis summary outlines pivotal metrics for Arthur J. Gallagher, Marsh & McLennan and Brown & Brown, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Aon ranks at the top for Revenue Growth among its peers, with the highest percentage at 18.35%. In terms of Gross Profit, Aon is also leading with $1.63B. However, Aon's Return on Equity is slightly lower compared to its peers, standing at 18.30%. Overall, Aon is positioned favorably compared to its peers in this analysis.

Discovering Aon: A Closer Look

Aon is a leading global provider of insurance and reinsurance brokerage and human resources solutions. Its operations are tilted toward its brokerage operations. Headquartered in London, Aon has about 50,000 employees and operations in over 120 countries.

Unraveling the Financial Story of Aon

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: Aon's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 18.35%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.

Net Margin: Aon's net margin excels beyond industry benchmarks, reaching 13.94%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Aon's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 18.3%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.14%, the company showcases effective utilization of assets.

Debt Management: With a high debt-to-equity ratio of 3.16, Aon faces challenges in effectively managing its debt levels, indicating potential financial strain.

To track all earnings releases for Aon visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.