AIG Earnings: Prepare to Have Your Mind Blown!
S&P 500 (NYSE:SPY) component American International Group Inc (NYSE:AIG) reported net income above Wall Street’s expectations for the first quarter. American International Group is a holding company that is engaged in insurance and insurance-related activities in the global marketplace.
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American International Group Inc Earnings Cheat Sheet for the First Quarter
Results: Net income for American International Group Inc rose to $3.21 billion ($1.71 per share) vs. $1.3 billion (35 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year-earlier quarter.
Actual vs. Wall St. Expectations: American International Group Inc beat the mean analyst estimate of $1.02 per share.
Quoting Management: “AIG has again delivered another strong quarter with our core insurance businesses all posting profits,” said Robert H. Benmosche, AIG President and Chief Executive Officer. “We also continue to make good on our promise to help the U.S. Government profit from its investment in AIG. During the quarter, we retired the preferred interests of AIA Aurora LLC (AIA SPV) one year ahead of schedule and achieved the milestone of reducing total outstanding or authorized U.S. Government assistance by 75 percent.
The company has now beaten estimates the last two quarters. In the fourth quarter of the last fiscal year, it topped expectations with net income of 82 cents versus a mean estimate of net income of 61 cents per share.
Looking Forward: Analysts have a more positive outlook about the company’s results for next quarter. The average estimate for second quarter is 62 cents per share, an increase from 61 cents sixty days ago. Over the past three months, the average estimate for the fiscal year has climbed from $2.45 per to share to $2.95.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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