Aon plc (AON) Tops Q4 EPS by 6c, Revenues Beat
Aon plc (NYSE: AON) reported Q4 EPS of $2.53, $0.06 better than the analyst estimate of $2.47. Revenue for the quarter came in at $2.9 billion versus the consensus estimate of $2.85 billion.
Fourth Quarter Key Metrics From Continuing Operations and Highlights
- Total revenue increased 4% to $2.9 billion, including organic revenue growth of 7%
- Operating margin increased to 18.2%, and operating margin, adjusted for certain items, increased 210 basis points to 27.9%
- EPS increased to $1.58, and EPS, adjusted for certain items, increased 17% to $2.53
- Repurchased 2.3 million Class A Ordinary Shares for approximately $450 million
- Subsequent to the close of the fourth quarter, the Company completed its acquisition of CoverWallet, expanding its position in the fast-growing commercial insurance market for small and medium-sized businesses, as well as the opportunity to leverage CoverWallet's platform to develop and scale innovative digital client experiences
"Our fourth quarter results reflect strong operational and financial performance to finish the year, highlighted by organic revenue growth of 7%, including growth of 5% or greater in four of the five solutions lines, and substantial operating margin improvement of 210 basis points. For the full year, we delivered our strongest level of organic revenue growth in over 15 years and adjusted operating margin of 27.5%," said Greg Case, Chief Executive Officer. "Our strong performance reflects continued momentum as we strategically position the firm to bring the best of global Aon to clients and execute against our Aon United strategy. We enter 2020 in a position of strength to continue to improve the long-term growth profile of the firm that we believe will unlock significant value for clients and shareholders."
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