Aon plc (NYSE:AON) reported worse-than-expected first-quarter financial results on Friday.
Aon posted adjusted earnings of $5.66 per share, missing market estimates of $5.91 per share. The company's sales came in at $4.070 billion versus expectations of $4.126 billion, according to data from Benzinga Pro.
Its operating margin fell 210 basis points to 36.0%, while operating margin, adjusted for certain items, rose 100 basis points to 39.7% during the quarter.
"Our global team delivered strong operating results in the first quarter, including 5% organic revenue growth, 100 basis points of adjusted operating margin improvement, and 9% adjusted EPS growth" said Greg Case, Chief Executive Officer. "We're delighted to welcome NFP to Aon and look forward to working together to help clients address increasing volatility across risk and people issues, enabled by Aon Business Services. With this earlier-than-expected close, we're moving even faster to address client demand, create more opportunities for our 60,000 colleagues, strengthen the long-term free cash flow profile of the firm, and enhance long-term shareholder value creation."
Aon shares fell 6.9% to close at $285.03 on Friday.
These analysts made changes to their price targets on Aon following earnings announcement.
- Piper Sandler cut the price target on Aon from $326 to $312. Piper Sandler analyst Paul Newsome maintained a Neutral rating.
- B of A Securities slashed the price target on Aon from $378 to $345. B of A Securities analyst Joshua Shanker maintained a Neutral rating.
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