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With a market cap of $78.1 billion, Dublin, Ireland-based Aon plc (AON) is a leading professional services firm, specializing in risk management, insurance and reinsurance brokerage, and human capital solutions. Aon provides comprehensive services across four principal revenue lines: Commercial Risk Solutions, Reinsurance Solutions, Wealth Solutions, and Health Solutions, catering to individuals, mid-market firms, and multinational corporations globally. AON is expected to release its fiscal Q4 earnings results before the market opens on Friday, Jan. 31.
Ahead of this event, analysts expect the insurance brokerage to report a profit of $4.24 per share, up 9% from $3.89 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in one of the last four quarters while missing on three other occasions. AON exceeded the consensus EPS estimate by 11% in the most recent quarter.
For fiscal 2024, analysts expect AON to report EPS of $15.43, up 9.1% from $14.14 in fiscal 2023. In addition, its EPS is projected to grow 12.6% year-over-year, reaching $17.38 in fiscal 2025.
Aon has risen 20.4% over the past 52 weeks, underperforming the S&P 500 Index's ($SPX) 24.9% return and the Financial Select Sector SPDR Fund's (XLF) 33.1% increase over the same period.
Shares of Aon surged 5.2% on Oct. 25 after the release of its strong Q3 2024 results. The company reported adjusted EPS of $2.72, beating the consensus estimate, and revenue of $3.7 billion, which grew 26% year-over-year. Robust organic revenue growth, driven by strong retention, new business generation, and performance across its Commercial Risk, Wealth, and Reinsurance Solutions segments, bolstered investor confidence. Additionally, Aon reported an adjusted operating margin of 24.6%, up 30 basis points year over year, and progress on its Aon United Restructuring program, which is expected to generate $350 million in annual savings by 2026.
Overall, analysts' consensus view on Aon stock is cautiously optimistic, with a "Moderate Buy" rating. Out of 22 analysts covering the stock, opinions include seven "Strong Buys," one "Moderate Buy," 11 "Holds," one "Moderate Sell," and two "Strong Sells." This configuration is more bullish than one month ago when the stock had five “Strong Buy” ratings.
As of writing, AON is trading below the average analyst price target of $387.21.
