2024

Better

when

<div class="textg" style="text-align: justify; font-weight: lighter; line-height: 1.3em; font-size: 15px; border-radius: 3px; color: #80909a; padding: 10px; background-color: #F4F6F9; margin-bottom: 15px;">
 Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
</div>
<p class="has-drop-cap">Aon plc (NYSE: AON) reported an 18% increase in total revenue for the <a href="https://aon.mediaroom.com/2024-07-26-Aon-Reports-Second-Quarter-2024-Results" target="_blank" aria-label="second quarter of 2024 (opens in a new tab)" rel="noopener noreferrer nofollow" class="deco-link">second quarter of 2024</a>, reaching $3.8 billion compared to the prior year period. This growth was driven by a combination of acquired revenues from NFP and a 6% organic revenue growth, partially offset by a 1% unfavorable impact from foreign currency translation. <br><br>Despite this revenue growth, the company’s operating margin decreased by 910 basis points to 17.4%. However, on an adjusted basis, the operating margin saw a slight increase of 10 basis points to 27.4%.</p>
<p>The company also reported a decrease in net income attributable to Aon shareholders, which fell by 6% to $524 million. Adjusted net income, however, increased by 9% to $624 million. <a href="https://tokenist.com/investing/how-to-value-a-stock/" rel="noopener noreferrer nofollow" class="deco-link">Earnings per share (EPS)</a> decreased by 9% to $2.46, while adjusted EPS rose by 6% to $2.93. <br><br>The decline in GAAP EPS was attributed to higher operating expenses, which increased by 33% to $3.1 billion, primarily due to the inclusion of NFP’s ongoing expenses and restructuring program charges.</p>
<h3 id="aon-falls-short-on-eps-expectations-in-q2-posts-better-than-expected-revenue">AON Falls Short on EPS Expectations in Q2, Posts Better than Expected Revenue</h3>
<p>Aon’s second-quarter performance showed mixed results when compared to market expectations. The company reported an adjusted EPS of $2.93, which fell short of the expected EPS of $3.09. This represents a 5% shortfall. <br><br>On the revenue front, Aon exceeded expectations by reporting $3.8 billion in revenue, surpassing the anticipated $3.74 billion. This demonstrates the company’s ability to generate higher-than-expected revenue despite facing challenges in meeting EPS targets.</p>
<p>The company’s organic revenue growth was robust across various segments. Commercial Risk Solutions saw a 6% growth, driven by new business generation and strong retention across all major geographies. Reinsurance Solutions also performed well with a 7% organic revenue growth, reflecting strong growth in treaty and facultative placements. <br><br>Health Solutions and Wealth Solutions reported 6% and 9% organic revenue growth, respectively, highlighting the strength in core health and benefits brokerage and advisory demand in retirement services.</p>
<div class="cta-referral"><img src="https://tokenist.com/wp-content/themes/thetokenist/assets/img/del/cta-referral-1.png" alt="" class="cta-referral__img" loading="lazy" decoding="async">
 <div class="cta-referral__text">
  <p>Join our&nbsp;<a href="https://t.me/thetokenist" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">Telegram group&nbsp;and never miss a breaking story.</a></p>
 </div>
</div>
<h3 id="guidance">Guidance</h3>
<p>Looking ahead, Aon provided insights into its future performance, particularly concerning the impact of foreign currency translation. The company expects an unfavorable impact of approximately $0.01 per share on adjusted operating income in the third quarter of 2024 if currency rates remain stable. This impact is projected to increase to $0.02 per share in the fourth quarter, resulting in a total unfavorable impact of $0.07 per share for the full year 2024. This translates to an approximate $21 million decrease in adjusted operating income for the year.</p>
<p>Aon also highlighted its ongoing integration of NFP and the anticipated financial commitments. The acquisition of NFP, valued at $13.0 billion, is expected to contribute significantly to the company’s growth. However, the integration process will incur non-recurring costs, including transaction and integration costs, which were $95 million in the second quarter.</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe>
<p><em>Disclaimer: The author does not hold or have a position in any securities discussed in the article.</em></p>
<h3 id="br"><br></h3>
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/aon-reports-18-revenue-surge-in-q2-amid-operating-margin-decline/">AON Reports 18% Revenue Surge in Q2 Amid Operating Margin Decline</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

AON Reports 18% Revenue Surge in Q2 Amid Operating Margin Decline

目录

Tokenist

发布于 2024年7月26日的其他文章

Famous Short-Seller Who Called Crypto "Complete Fraud" Gets Charged with Fraud

Bitwise Displays Ethereum ETF Banner On NYSE Building

Nakamoto Games Partners with Apple to Drive Mass Adoption

Whales React to Ethereum ETF Launch: Massive ETH Movements Unveiled!

Mt. Gox Is Far From Done With Distributing Bitcoin, Here’s How Much BTC Is Left

Binance Exec's Health Deteriorates in Nigeria Prison, Wheelchair-Bound in Court

订阅我们免费的电子期刊，获取每日最新加密领域动态！