What to Expect From Aon plc's Next Quarterly Earnings Report

Barchart · 10/15 04:36

Aon plc (AON), headquartered in Dublin, Ireland, is a professional services firm that provides a range of risk and human capital solutions. With a market cap of $77.2 billion, the company's services include helping manage risk for clients, negotiating and placing insurance risk with other carriers, and advising clients related to health and benefits, retirement, compensation, strategic human capital, and human resource outsourcing. The leading global professional services firm is expected to announce its fiscal third-quarter earnings for 2024 on Friday, Oct. 25.

Ahead of the event, analysts expect AON to report a profit of $2.46 per share on a diluted basis, up 6% from $2.32 per share in the year-ago quarter. The company missed the consensus estimates in three of the last four quarters while beating the forecast on another occasion.

For the full year, analysts expect AON to report EPS of $15.22, up 7.6% from $14.14 in fiscal 2023. Its EPS is expected to rise 14.4% year over year to $17.41 in fiscal 2025.

AON stock has outperformed the S&P 500’s ($SPX) 22.9% gains on a YTD basis, with shares up 23.2% during this period. However, it underperformed the Financial Select Sector SPDR Fund’s (XLF) 24.5% gains over the same time frame.

AON's launch of an enhanced Radford McLagan Compensation Database is expected to boost its analytics offerings for clients in the Human Capital space. This move consolidates compensation and talent insights, allowing clients to benchmark pay, access talent analytics, and make informed decisions on attracting and retaining talent. By enhancing the database, AON is improving its offerings and positioning itself for strong organic growth. This aligns with AON's strategy to deliver superior capabilities across Human Capital and Risk Capital, benefitting its performance.

On Jul. 26, AON shares closed up more than 8% after reporting its Q2 results. Its adjusted EPS of $2.93 missed Wall Street expectations of $3.09. The company’s revenue was $3.8 billion, topping Wall Street forecasts of $3.7 billion.

Analysts’ consensus opinion on AON stock is cautious, with a “Hold” rating overall. Out of 21 analysts covering the stock, five advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, 11 give a “Hold” rating, one advises a “Moderate Sell” rating, and three recommend a “Strong Sell.” While AON currently trades above its mean price target of $355.37, the Street-high price target of $413 suggests an upside potential of 15.2%.

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On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.