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Aon (AON) to Announce Q1 Earnings: What is in the Cards?
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Aon plc (AON - Free Report) is slated to report first-quarter 2021 results on Apr 30, before the opening bell.
Q1 Estimates
The Zacks Consensus Estimate for Aon’s first-quarter earnings is pegged at $4.04 per share, indicating a rise of 9.8% from the prior-year quarter’s reported figure.
The consensus mark for revenues stands at $3.3 billion, suggesting an increase of 4% from the year-ago quarter’s reported figure.
Factors to Note
The company is likely to have witnessed organic revenue growth in the first quarter owing to growth in core areas.
The company’s segments, namely Commercial Risk Solutions, Reinsurance Solutions, Data & Analytic Services, Health Solutions and Retirement Solutions are likely to have contributed to its top line in the to-be-reported quarter.
The Zacks Consensus Estimate for the Commercial Risk Solutions segment’s first-quarter revenues is pegged at $1.2 billion, suggesting a 4.9% increase from the prior-year quarter’s reported figure. The metric might have witnessed a hike owing to robust retention and management of the renewal book portfolio resulting in double-digit growth in Latin America and solid growth across the United States.
Year-over-year growth in the Data & Analytics Services segment is expected to have been favorable as the traveling spend of people increased. The consensus mark for this segment’s revenues stands at $337 million, indicating a 1.8% rise from the year-ago quarter’s reported figure.
Moreover, the Zacks Consensus Estimate for the Health Solutions segment’s first-quarter revenues is pegged at $531 million, suggesting a 5.8% improvement from the year-ago period’s reported figure. This uptrend could be led by the growing healthcare exchange business, and a solid retention and management of the renewal book portfolio in health and benefits brokerage.
The consensus mark for the Retirement Solutions business also looks favorable as its revenues are estimated at $403 million, indicating 1.5% growth from the year-ago quarter’s reported figure.
The Reinsurance Solutions segment is likely to have witnessed growth in the to-be-reported quarter on the back of constant new business generation. The consensus estimate for the segment’s first-quarter revenues stands at $908 million, indicating an improvement of 7.1% from the prior-year quarter’s reported number.
The company is likely to have continued with its share repurchase program, which provided a cushion to its overall performance.
On its last earnings call, management had expected a favorable impact of 20 cents per share from foreign exchange on its first-quarter 2021 earnings assuming the same rates.
Aon is likely to have witnessed higher free cash flow amid improved collections and a solid operational excellence.
It is likely to have sustained its share buyback plan in the to-be-reported quarter.
Finally, the company might have incurred higher costs in the to-be-reported quarter on account of substantial investments in the priority areas for long-term growth and an increase in certain discretionary expenses.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Aon this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat as you can see here:
Earnings ESP: Aon has an Earnings ESP of +0.79%. This is because the Most Accurate Estimate is pegged at $4.07, higher than the Zacks Consensus Estimate of $4.04. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Aon reported fourth-quarter 2020 operating earnings of $2.62 per share, which outpaced the Zacks Consensus Estimate by 5.7%. Moreover, the bottom line climbed 4% year over year.
The company’s results benefited from higher revenues and lower operating costs.
The company’s earnings beat estimates in three of the trailing four quarters and missed the same once. It has a trailing four-quarter earnings surprise of 2.1%, on average.
Other Stocks to Consider
Some other stocks worth considering from the insurance space with a perfect mix of elements to surpass estimates in the upcoming quarterly releases are as follows:
American International Group, Inc. (AIG - Free Report) currently has a Zacks Rank of 3 and an Earnings ESP of +0.23%.
Sun Life Financial Inc. (SLF - Free Report) is currently Zacks #3 Ranked and has an Earnings ESP of +9.26%.
The Allstate Corporation (ALL - Free Report) is currently a #3 Ranked player and has an Earnings ESP of +2.67%.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
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Image: Bigstock
Aon (AON) to Announce Q1 Earnings: What is in the Cards?
Aon plc (AON - Free Report) is slated to report first-quarter 2021 results on Apr 30, before the opening bell.
Q1 Estimates
The Zacks Consensus Estimate for Aon’s first-quarter earnings is pegged at $4.04 per share, indicating a rise of 9.8% from the prior-year quarter’s reported figure.
The consensus mark for revenues stands at $3.3 billion, suggesting an increase of 4% from the year-ago quarter’s reported figure.
Factors to Note
The company is likely to have witnessed organic revenue growth in the first quarter owing to growth in core areas.
The company’s segments, namely Commercial Risk Solutions, Reinsurance Solutions, Data & Analytic Services, Health Solutions and Retirement Solutions are likely to have contributed to its top line in the to-be-reported quarter.
The Zacks Consensus Estimate for the Commercial Risk Solutions segment’s first-quarter revenues is pegged at $1.2 billion, suggesting a 4.9% increase from the prior-year quarter’s reported figure. The metric might have witnessed a hike owing to robust retention and management of the renewal book portfolio resulting in double-digit growth in Latin America and solid growth across the United States.
Year-over-year growth in the Data & Analytics Services segment is expected to have been favorable as the traveling spend of people increased. The consensus mark for this segment’s revenues stands at $337 million, indicating a 1.8% rise from the year-ago quarter’s reported figure.
Moreover, the Zacks Consensus Estimate for the Health Solutions segment’s first-quarter revenues is pegged at $531 million, suggesting a 5.8% improvement from the year-ago period’s reported figure. This uptrend could be led by the growing healthcare exchange business, and a solid retention and management of the renewal book portfolio in health and benefits brokerage.
The consensus mark for the Retirement Solutions business also looks favorable as its revenues are estimated at $403 million, indicating 1.5% growth from the year-ago quarter’s reported figure.
The Reinsurance Solutions segment is likely to have witnessed growth in the to-be-reported quarter on the back of constant new business generation. The consensus estimate for the segment’s first-quarter revenues stands at $908 million, indicating an improvement of 7.1% from the prior-year quarter’s reported number.
The company is likely to have continued with its share repurchase program, which provided a cushion to its overall performance.
On its last earnings call, management had expected a favorable impact of 20 cents per share from foreign exchange on its first-quarter 2021 earnings assuming the same rates.
Aon is likely to have witnessed higher free cash flow amid improved collections and a solid operational excellence.
It is likely to have sustained its share buyback plan in the to-be-reported quarter.
Finally, the company might have incurred higher costs in the to-be-reported quarter on account of substantial investments in the priority areas for long-term growth and an increase in certain discretionary expenses.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Aon this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat as you can see here:
Earnings ESP: Aon has an Earnings ESP of +0.79%. This is because the Most Accurate Estimate is pegged at $4.07, higher than the Zacks Consensus Estimate of $4.04. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Aon plc Price and EPS Surprise
Aon plc price-eps-surprise | Aon plc Quote
Zacks Rank: Aon currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Highlights of Q4 Earnings and Surprise History
Aon reported fourth-quarter 2020 operating earnings of $2.62 per share, which outpaced the Zacks Consensus Estimate by 5.7%. Moreover, the bottom line climbed 4% year over year.
The company’s results benefited from higher revenues and lower operating costs.
The company’s earnings beat estimates in three of the trailing four quarters and missed the same once. It has a trailing four-quarter earnings surprise of 2.1%, on average.
Other Stocks to Consider
Some other stocks worth considering from the insurance space with a perfect mix of elements to surpass estimates in the upcoming quarterly releases are as follows:
American International Group, Inc. (AIG - Free Report) currently has a Zacks Rank of 3 and an Earnings ESP of +0.23%.
Sun Life Financial Inc. (SLF - Free Report) is currently Zacks #3 Ranked and has an Earnings ESP of +9.26%.
The Allstate Corporation (ALL - Free Report) is currently a #3 Ranked player and has an Earnings ESP of +2.67%.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
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