AON Corp. (AON) Tops Q3 EPS by 9c, Revenues Miss

AON Corp. (NYSE: AON) reported Q3 EPS of $1.31, $0.09 better than the analyst estimate of $1.22. Revenue for the quarter came in at $2.3 billion versus the consensus estimate of $2.39 billion.

• Total revenue increased 6% to $2.3 billion, including 6% organic revenue growth
• Operating margin increased to 11.2%, and operating margin, adjusted for certain items, increased 190 basis points to 18.5%
• EPS decreased to $0.61, and EPS, adjusted for certain items, increased 34% to $1.31
• For the first nine months of 2018, cash flow from operations increased 237% to $975 million, and adjusted free cash flow increased 5% to $1,163 million, when excluding certain near-term impacts related to the divestiture of the outsourcing business
• Repurchased 2.1 million Class A Ordinary Shares for approximately $300 million
• Launched a silent cyber solution, driven by analytics and backed by a reinsurance solution, to help carriers respond to expanding cyber risk and regulations

"In the third quarter, we delivered positive performance across each of our key financial metrics; highlighted by strong organic revenue growth of 6% overall, with four of our five revenue lines delivering organic revenue growth of 5% or greater, and 18% operating income growth, of which 9% was driven by core operational improvement. Results year-to-date reflect accelerating revenue growth and continued momentum toward achieving our near-term target of exceeding $7.97 adjusted earnings per share for the full year 2018," said Greg Case, Chief Executive Officer. "While we are increasing our long-term growth profile through significant investments in client-facing colleagues and capabilities that deliver Aon United, we are also driving substantial free cash flow generation that is expected to enable tremendous capital allocation opportunities and unlock significant shareholder value creation over the long-term."

For earnings history and earnings-related data on AON Corp. (AON) click here.

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