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With a market cap of $64.6 billion, Aon plc (AON) operates as a global leader in risk management, insurance brokerage, and human resource consulting services. Based in Dublin, Ireland, the company is expected to announce its fiscal Q2 earnings results on Friday, Jul. 26.
Ahead of this event, analysts anticipate AON to report a profit of $3.09 per share, up around 12% from the year-ago quarter's $2.76 per share. The company has a mixed earnings surprise history, having exceeded Wall Street's bottom-line estimates in one of the past four quarters while falling short on three other occasions. In the most recent quarter, the company missed the consensus EPS estimate by 3.4%, primarily due to challenges in its U.S. retail brokerage business.
For fiscal 2024, analysts expect AON to report EPS of $15.42, up 9.1% from $14.14 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow by 13.2%, reaching $17.46.
On a YTD basis, AON has shown relatively weaker performance compared to broader markets, with its shares gaining 2.6%, while the S&P 500 Index ($SPX) has risen 18.1%, and the S&P 500 Financials Sector SPDR (XLF) has returned 14.7% over the same period.
Shares of AON dropped 6.9% on Apr. 26 after its Q1 profit fell short of expectations, driven by weaker performance in its U.S. retail brokerage business due to lower net new business and ongoing challenges from external capital markets activities. However, the company's resilience is evident as it launched a $350 million insurance program on Jun. 12 with the U.S. International Development Finance Corporation to boost insurance capacity and support economic recovery efforts in Ukraine.
Analysts' consensus view on AON stock remains cautious, with a "Hold" rating overall. Out of 19 analysts covering the stock, four recommend a "Strong Buy," 10 give a "Hold" rating, two suggest "Moderate Sell," and three advise a "Strong Sell."
However, the above consensus is slightly less bullish than three months ago, with two “Strong Sell” ratings. The average analyst price target for AON is $321.53, suggesting a potential upside of 8.2% from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
