Earnings Preview: Aon Corp.

Aon Corp. (AOC) is expected to report Q3 earnings before market open Friday, Oct. 31, with a conference call scheduled for 8:30 am.

Guidance

Analysts are looking for EPS of 63c on revenue of $1.84B. The consensus range for EPS is 60c to 66c, while the consensus range for revenue is $1.79B to $1.87B, according to First Call.

Analyst Views

Three research firms have issued positive notes about Aon in recent weeks. Merrill Lynch upgraded Aon to Buy from Neutral, citing potential improvements in the reinsurance markets. Goldman Sachs upgraded the company to Buy from Neutral on October 15. Last month, Citigroup predicted that Aon would be able to raise its prices in the wake of hurricanes Gustav and Ike. The firm also forecast that the company would benefit from AIG's problems, and Citigroup recommended owning Aon's shares.

On the other hand, some companies in the insurance sector have recently reported disappointing results. Progressive (PGR), Travelers (TRV), and Allstate (ALL) have announced Q3 earnings that fell well below consensus estimates.

In late August, Aon agreed to buy British reinsurance broker Benfield Group for $1.58B. Investors will want to receive an update tomorrow regarding the integration of Benfield Group.