) is set to report first-quarter 2014 results on April 25, 2014.
Last quarter, it posted a 0.65% surprise. Let's see how things
are shaping up for this announcement.
Factors this Past Quarter
On the operational front, Aon has undertaken restructuring
plans that have generated savings and checked operating expenses,
making way for margin expansion. However, increased debts,
competitive threats and exposure to foreign exchange rate
fluctuations might dampen the results to some extent.
Aon has been upfront in bolstering its capital deployments that
should help the company retain investor confidence. In order to
share more profits with shareholders, the company increased its
annual dividend by a significant 43% recently. With a strong cash
flow, the company is favorably positioned to support these
Our proven model does not conclusively show that Aon is likely
to beat earnings this quarter. That is because a stock needs to
have both a positive
(Expected Surprise Prediction) and a Zacks Rank of #1, 2 or 3 for
this to happen. That is not the case here as you will see
Negative Zacks ESP:
That is because the Most Accurate estimate stands at $1.16 per
share while the Zacks Consensus Estimate is pegged at $1.17 per
share, translating into a difference of -0.86%.
Zacks Rank #3 (Hold):
Aon's Zacks Rank #3 increases the predictive power of ESP but
when combined with a negative ESP, it makes surprise prediction
difficult. We caution against stocks with Zacks Rank #4 and 5
(Sell-rated stocks) going into the earnings announcement,
especially when the company is seeing zero or negative estimate
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
RenaissanceRe Holdings Ltd.
) with Earnings ESP of +9.52% and Zacks Rank #1 (Strong Buy).
Endurance Specialty Holdings Ltd.
), with Earnings ESP of +9.91% and Zacks Rank #1.
Validus Holdings, Ltd.
), with Earnings ESP of +1.30% and Zacks Rank #3.
AON PLC (AON): Free Stock Analysis Report
ENDURANCE SPLTY (ENH): Free Stock Analysis
RENAISSANCERE (RNR): Free Stock Analysis
VALIDUS HOLDING (VR): Free Stock Analysis
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