AON Earnings Prediction
The chart below shows how AON performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AON sees a +0.89% change in stock price 10 days leading up to the earnings, and a +3.19% change 10 days following the report. On the earnings day itself, the stock moves by -0.82%. This data can give you a slight idea of what to expect for the next quarter's release.
AON Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
4.15B
22.87%
11.45%
Gross Margin
43.28%
-10.76%
19.29%
Operating Margin
28.94%
-12.94%
48.11%
Net Margin
17.70%
17.84%
85.53%
EPS
3.28
32.79%
108.92%
No Data Available
AON Earnings Analysis
Aon PLC Corporation (AON.N) Earnings Conference Call
Positive
Strong Financial Performance: For the full year 2024, organic revenue grew 6%, total revenue increased by 17%, and operating income rose by 17%, demonstrating strong financial performance.
EPS Growth and Efficiency: Adjusted earnings per share (EPS) grew by 10% to $15.60, reflecting effective cost management and operational efficiency.
Strong Free Cash Flow: Free cash flow reached $2.8 billion, showcasing robust cash generation capabilities and supporting capital return to shareholders.
EBITDA Contribution from Acquisition: The acquisition of NFP contributed $36 million in EBITDA, with strong producer retention and a healthy pipeline for future growth.
Margin Expansion Success: Adjusted operating margin improved to 33.3% in Q4, up 140 basis points from the previous baseline, indicating effective margin expansion strategies.
Negative
Rising Interest Expense: Interest expense increased by $82 million to $206 million in Q4 2024, primarily due to the issuance of $7 billion in debt for the NFP acquisition, indicating a significant rise in financial costs.
Tax Rate Increase Impact: The tax rate for Q4 2024 was 17%, bringing the full year rate to 20%, which reflects an increase driven by growth in higher tax geographies and unfavorable discrete items, suggesting a negative impact on net income.
Free Cash Flow Challenges: Free cash flow in 2024 was impacted by extraordinary items, including integration costs from the NFP acquisition and legal settlement expenses, which could hinder future cash flow growth.
Market Impact and Revenue Challenges: The net market impact from growth and exposures in rates was flat, with a modestly negative rate impact in reinsurance during Q4, indicating potential challenges in revenue growth from this segment.
Foreign Exchange Impact on EPS: The guidance for 2025 includes an expected $0.32 or 2 point EPS headwind from foreign exchange rates, which could negatively affect overall earnings performance.
AON FAQs
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AON Earning Call Sentiment
Earnings call transcript: Aon PLC's Q4 2024 shows revenue growth, stock dips
AON.N
1.19%Positive
The earnings call reflects strong financial performance, with a 17% revenue increase and a 10% EPS rise. The reaffirmed guidance for organic growth and margin expansion, along with significant debt repayment and capital returns, indicate financial health. The Q&A highlights successful integration of NFP and positive retention trends, though some uncertainties remain. The share repurchase plan and high free cash flow expectations further support a positive outlook. Despite some risks, the overall sentiment is positive, suggesting a stock price increase of 2% to 8% over the next two weeks.
