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Aon plc (AON) Q2 Earnings and Revenues Miss Estimates

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Aon plc (AON - Free Report) offers risk management services, insurance and reinsurance brokerage, human resource consulting and outsourcing services globally. With operations in more than 120 countries, the company utilizes its resources to develop individual as well as group insurance programs. It offers its services globally across personal lines, mid-market companies and multinational companies.

Inorganic growth strategies and cost containment measures form the foundation for Aon’s operational strength. The company intends to continue with its acquisition activities globally, particularly in the emerging economies, in order to reach out to more clients.

Moreover free cash flow generation helps the company to implement efficient capital management strategies that boost shareholder confidence on the stock.

However, the company is exposed to catastrophes which affect its financials adversely. Moreover, increased debt levels, competitive threats, and pressures from lawsuits raise caution.

Aon has a solid history when it comes to earnings as the stock has beaten estimates in three of the last four quarters, making for an average surprise of 2.6%.

Currently, Aon has a Zacks Rank #4 (Sell), but that could definitely change following its earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Aon’s second quarter earnings missed our estimate. The company’s operating earnings of $1.39 per share lagged behind the Zacks Consensus Estimate of $1.40.

AON PLC Price and EPS Surprise

AON PLC Price and EPS Surprise | AON PLC Quote

Revenue: Revenues missed our estimate. Our consensus called for revenues of $2,845 million, and the company reported revenues of $2,766 million.

Key Stats to Note: Operating expenses decreased 7% year over year to $2.4 billion. Operating margin expanded 30 basis points to 19.3%.

Free cash flow increased 51% to $660 million for the first six months of 2016.

Check back later for our full write up on this AON earnings report later!

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