NYSE$AON

Aon plc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Aon reported strong operating results in the first quarter of 2024, with increases in total revenue, EPS, and adjusted EPS, alongside a decrease in operating margin.

Aon plc announced its first quarter 2024 results, reporting a 5% increase in total revenue to $4.1 billion, with organic revenue growth also at 5%. Diluted EPS rose by 6% to $5.35, and adjusted diluted EPS increased by 9% to $5.66. Operating margin decreased by 210 basis points to 36.0%, while adjusted operating margin increased by 100 basis points to 39.7%. Cash flows from operations were $309 million, and free cash flow decreased by 29% to $261 million.

  • Total revenue increased 5% to $4.1 billion, driven by strong retention and new business generation.
  • Adjusted diluted EPS grew 9% to $5.66, reflecting strong operating results.
  • The acquisition of NFP was completed on April 25, 2024, with accretion and free cash flow benefit realization expected a year earlier.
  • The company repurchased 0.8 million class A ordinary shares for approximately $250 million.

Headline financials

Total Revenue

$4.07B

Previous: $3.87B+5.1%
EPS (adj)

$5.66

Previous: $5.07+11.6%
Capital Expenditures

-$48M

Previous: -$76M+36.8%
Free Cash Flow

$261M

Previous: $974M-73.2%
Net Income

$1.09B

Previous: $1.05B+4.1%
Operating Income

$1.47B

Previous: $1.47B-0.5%

Revenue & EPS history

Aon · Revenue · Quarterly

$4.07B

Q1 2024+5.1%vs Q1 2023
Beat estimate in 2 of 5 quarters(40%)
ActualEstimate

Revenue by segment

Aon · $3.13B total across 4 segments · Q4 2022

  • Commercial Risk
    $1.82B
  • Health
    $678M
  • Wealth
    $353M
  • Reinsurance
    $281M

Forward guidance

Aon expects the acquisition of NFP to accelerate accretion and free cash flow benefit realization by a year. The company anticipates an unfavorable impact on adjusted operating income and EPS from foreign currency translation in the second quarter and full year 2024.

Tailwinds

  • Accretion and free cash flow benefit realization from NFP acquisition now expected a year earlier than modeled.
  • Moving faster to address client demand and create more opportunities for colleagues.
  • Strengthening the long-term free cash flow profile of the firm.
  • Enhancing long-term shareholder value creation.
  • Anticipated continued strong operating results.

Headwinds

  • Expected unfavorable impact of approximately $0.05 per share from foreign currency translation in Q2 2024.
  • Expected approximately $15 million decrease in adjusted operating income from foreign currency translation in Q2 2024.
  • Expected unfavorable impact of approximately $0.03 per share from foreign currency translation for full year 2024.
  • Expected approximately $9 million decrease in adjusted operating income from foreign currency translation for full year 2024.
  • Potential for volatility in tax rate due to various factors including global tax proposals.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-0.6%

Avg return

Earnings day

-1.2%

Avg return

5 days after

+1.4%

Avg return

30 days after

33%

11 / 33 earnings

Positive

+5.1%

Q1 2021

Best reaction

-9.4%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.0%-1.1%+1.3%
Q4 2025+2.0%+2.1%-2.2%
Q3 2025+3.8%+4.1%+7.8%
Q2 2025+4.6%-0.4%+5.2%
Q1 2025-8.0%-2.8%-2.3%
Q4 2024+0.3%-1.1%+4.0%
Q3 2024-0.5%+0.1%+6.3%
Q2 2024+0.0%+0.8%+12.0%
Q1 2024+0.0%-4.4%-15.5%
Q4 2022+0.0%-0.5%+2.7%
Q3 2023-4.0%-2.5%+3.2%
Q2 2023-5.1%-4.1%-1.5%
Q1 2023-2.3%-3.8%-6.7%
Q3 2022+2.4%-1.1%+8.8%
Q2 2022-0.6%-2.3%-2.4%
Q1 2022-9.4%-8.1%-11.4%
Q3 2021-0.4%-8.2%-8.4%
Q2 2021-1.4%-1.7%+8.1%
Q1 2021+5.1%+6.3%+5.9%
Q3 2020-1.5%-1.8%+10.6%
Q2 2020-1.1%-4.3%-3.5%
Q1 2020+3.2%+2.6%+14.1%
Q3 2019-1.4%+1.7%+4.3%
Q2 2019-1.2%-3.9%-3.9%
Q1 2019+0.3%-2.2%-1.0%
Q3 2018+1.6%+4.1%+7.5%
Q2 2018-2.5%-4.0%-1.9%
Q1 2018-0.4%+0.9%+0.1%
Q3 2017-3.3%-5.5%-8.3%
Q2 2017-0.0%+0.9%-0.1%
Q1 2017+1.2%+1.2%+7.2%
Q3 2016+2.7%-0.8%+5.0%
Q2 2016-3.0%-0.6%-0.3%

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