Aon Plc (NYSE:AON) announced its Q4 and full-year results that ended on December 31, 2022. The quarterly earnings of $3.89 per share beat analysts’ estimates of $3.67.
Aon is a UK-based multinational company that provides various financial solutions like reinsurance, retirement, commercial risk, and health. The company serves customers in more than 120 countries globally.
For the fourth quarter, the company’s revenue increased by 2% to $3.13 billion, which included 5% organic revenue growth. The revenue was in line with the analysts’ forecast of $3.13 billion and was higher than $3.08 billion in Q4 of 2021. The company’s reinsurance solution grew the most, by 27%, among all its segments.
Talking about the yearly numbers, Aon delivered a “very strong year” with a more than 100% jump in the net income of $12.14 per share, as compared to $5.5 per share in 2021.
The company’s free cash flow jumped by 48% year-over-year to a record high of $3.02 billion. For the year, the company’s revenue increased by 2% to $12.5 billion.
Moving forward, with the rising global risks, the company is confident of the growing opportunities for engaging clients. Analysts forecast revenue of $3.87 billion and an EPS of $5.31 per share for Q1 2023.
Aon Stock Price Target
Aon’s stock was down by 3% after the earnings announcement. In the last three years, the stock has generated returns of 40%.
According to analysts, AON stock has a Hold rating on TipRanks, based on a total of eight recommendations. The average price target of $324.6 implies 3.5% upside potential from current levels.
