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Aon plc (AON) Tops Q3 Earnings, Revenues Up Y/Y

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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 4.4%.

Currently, Aon has a Zacks Rank #2 (Buy), 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 third quarter earnings surpassed our estimate. The company’s adjusted operating earnings is $1.29 per share while Zacks Consensus Estimate stands at $1.27.

Revenue: The company’s revenue of $2.3 billion improved 6% year over year.

Key Stats:

Operating expenses increased 13% to $2 billion.

Adjusted Operating margin expanded 170 basis points to 20.3%.

Free cash flow decreased 84% to $164 million for the first nine months of 2017.

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

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