The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Aon met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share improved significantly.
Margins grew across the board.
Aon logged revenue of $2.99 billion. The nine analysts polled by S&P Capital IQ foresaw net sales of $3.00 billion. Sales were 2.9% higher than the prior-year quarter's $2.91 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.97. The 18 earnings estimates compiled by S&P Capital IQ averaged $0.96 per share on the same basis. GAAP EPS of $0.82 for Q4 were 24% higher than the prior-year quarter's $0.66 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 44.0%, 300 basis points better than the prior-year quarter. Operating margin was 16.1%, 90 basis points better than the prior-year quarter. Net margin was 9.3%, 140 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.85 billion. On the bottom line, the average EPS estimate is $0.86.
Next year's average estimate for revenue is $11.65 billion. The average EPS estimate is $3.62.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 142 members out of 162 rating the stock outperform, and 20 members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 53 give Aon a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Aon is outperform, with an average price target of $54.13.
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