Will Aon Plc (AON) Disappoint Investors In Q3 Earnings?
Zacks Investment Research | Oct 25, 2016 11:32PM ET
Aon plc (NYSE:AON) is set to report third-quarter 2016 results on Oct 28, before the market opens. Last quarter, the company posted a negative earnings surprise of 71%. Let’s see how things are shaping up for this announcement.
Factors to be Considered this Quarter
Aon has been driving a set of initiatives and making strategic investments that are likely to have strengthened the underlying performance of its risk-solution segment for the to-be-reported quarter.
Aon’s proactive client partnership might have continued to drive retention rates and boost new business generation in the third quarter.
The launch of Aon Client Treaty should have bolstered its broking initiatives that started bearing fruit in the third quarter, with the largest ever underwritten portfolio of risk.
The acquisition of Univers is expected to substantially contribute to Aon’s top line in the third quarter.
Exploring new business opportunities for growth combined with industry-leading data and analytics is likely have well positioned Aon’s reinsurance business in the third quarter.
Aon Hewitt's leadership backed by its in-depth understanding of the market might have facilitated the company to maintain its leadership.
Continuous investments in improvising health solutions, covering the full range of benefit strategies, client size, funding choices and Aon’s private health care exchangesmight have helped it to grow steadily in the to-be-reported quarter.
Aon is likely to display solid organic growth across all major business segments due to its industry-leading platform of client-serving capabilities. The recent alliance with Starbucks (NASDAQ:SBUX) has likely strengthened its consumer-driven approach to health benefits
Aon’s vast investments in InPoint, a dedicated platform for providing data, analytics, engagement and consultation to insurers and reinsurers, are expected to have strengthened its client base and contributed to a better top line in the third quarter.
Aon’s target of returning capital to shareholders through share repurchase in the second half of the year might have boosted its margin by limiting the share count.
However, a persistently low interest rate along with Brexit-induced uncertainty might have limited the growth in net investment income.
The expected seasonal weakness of the third quarter is likely to have led to a normal quarterly pattern with modest operating income growth.
Despite its continuous efforts to reduce certain expenses that supported its non-core businesses, Aon might have suffered from the monetization of those.
Also, given its higher debt burden, the company does not expect its interest expense to be favorable in the third quarter.
AON PLC Price and EPS Surprise
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.