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Aon plc (AON) Q1 Earnings Beat Estimates, Revenues Miss

Aon plc AON 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 the last four quarters, making for an average surprise of 3.1%.

Currently, Aon has a Zacks Rank #3 (Hold), 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 first quarter earnings beat. The company’s operating earnings of $1.35 per share was ahead of the Zacks Consensus Estimate of $1.33.

Revenue: Revenues missed our estimate. Our consensus called for revenues of $2,875 million, and the company reported revenues of $2,792 million.

Key Stats to Note: Operating expenses decreased 3% year over year to $2.3 billion. Operating margin expanded 20 basis points to 18.5%

Share repurchase in the quarter totaled $750 million. Free cash flow decreased 6% to $221 million. The board of directors also approved a 105 increase to its dividend on Apr 18.

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

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AON PLC (AON): Free Stock Analysis Report
 
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