What's In Store For Aon (AON) Stock This Earnings Season?
Zacks Investment Research | Jan 27, 2020 09:45PM ET
Aon plc (NYSE:AON) is set to report fourth-quarter 2019 results on Jan 31, before the opening bell.
The Zacks Consensus Estimate for the bottom line stands at $2.49, implying a 15.3% increase from the prior-year reported figure. For the to-be-reported quarter, the consensus mark for fourth-quarter revenues is pegged at nearly $2.9 billion, suggesting 3.3% improvement from the year-ago reported figure.
Factors Likely to Impact Q4 Results
Aon is likely to have seen an uptick across all its segments, namely Commercial Risk Solutions, Data & Analytics, Health Solutions and Reinsurance Solutions segments, leading to solid revenues.
The Zacks Consensus Estimate for fourth-quarter revenues from the company’s Commercial Risk Solutions and Data & Analytics indicates 3% and 4.8% growth, respectively, from the year-earlier reported numbers.
Notably, the consensus mark for revenues from Health Solutions and Reinsurance Solutions suggests a rise of 3.8% and 4.3% each from the year-earlier reported numbers.
The Commercial Risks Solutions segment is likely to have witnessed an upside on the back of strong organic revenue growth across major geographies. The Reinsurance Solutions segment is likely to have grown in the fourth quarter, primarily driven by new business generation.
Notably, its Health Solutions segment might have benefited from organic growth in the period.
However, the consensus estimate for revenues from the Retirement Solutions segment implies a 1% dip from the year-ago reported figure. This downside might have been due to the divestiture of certain businesses in the segment.
Per the last earnings call, the company expected an unfavorable impact of 4 cents per share or $12 million reduction in fourth-quarter operating income (assuming currency to remain stable).
Despite challenges from adverse forex fluctuation, the company is likely to have witnessed a favorable operational margin.
Aon is also likely to have enjoyed free cash flow in the to-be-reported quarter, mainly on the back of its solid operational performance.
However, the company might have incurred high costs in the quarter to be reported induced by heavy investments.
What the Quantitative Model States
Our proven model does not conclusively predict an earnings beat for Aon for the quarter to be reported. The right combination of a positive Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.