Aon Corp Fourth Quarter Earnings Sneak Peek

Wall St. Cheat Sheet

S&P 500 component Aon Corp will unveil its latest earnings on Friday, February 3, 2012. Aon provides risk management and human capital consulting services, including insurance and reinsurance brokerage and workforce productivity solutions.

Aon Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 96 cents per share, a rise of 14.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.01. Between one and three months ago, the average estimate moved down. It also has dropped from 97 cents during the last month. Analysts are projecting profit to rise by 5.1% versus last year to $3.28.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the third quarter, it reported net income of 69 cents per share against a mean estimate of 73 cents. Two quarters ago, it beat expectations by one cent with profit of 83 cents.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 3.1% in revenue from the year-earlier quarter to $3 billion.

Analyst Ratings: Analysts are bullish on this stock with 12 analysts rating it as a buy, none rating it as a sell and four rating it as a hold.

A Look Back: In the third quarter, profit rose 37.5% to $198 million (59 cents a share) from $144 million (51 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 52.3% to $2.73 billion from $1.79 billion.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 46.1%, with the biggest boost coming in the most recent quarter when revenue rose 52.3% from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose 68.6% in the second quarter and 38.2% in the first quarter.

Competitors to Watch: Arthur J. Gallagher & Co. , Brown & Brown, Inc. , Marsh & McLennan Companies, Inc. , Willis Group Holdings PLC , CNinsure Inc. , Fortegra Financial Corp , InsWeb Corporation and eHealth, Inc. .

Stock Price Performance: During November 1, 2011 to January 30, 2012, the stock price had risen $2.55 (5.6%) from $45.42 to $47.97. The stock price saw one of its best stretches over the last year between February 3, 2011 and February 18, 2011 when shares rose for 12-straight days, rising 14.7% (+$6.71) over that span. It saw one of its worst periods between November 11, 2011 and November 23, 2011 when shares fell for nine-straight days, falling 9.2% (-$4.40) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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