American International Group Inc Earnings Cheat Sheet: Two Straight Quarters of Profit Broken by a Loss

S&P 500 (NYSE:SPY) component American International Group Inc (NYSE:AIG) reported its results for the third 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 Third Quarter

Results: Loss widened to $4.11 billion ($2.16 per diluted share) from $2.52 billion (loss of $18.53 per share) in the same quarter a year earlier.

Actual vs. Wall St. Expectations: AIG fell short of the mean analyst estimate of a loss of 8 cents per share.

Quoting Management: “AIG continues to navigate a challenging global economic environment, and our results for the quarter were adversely affected by equity market declines, widening credit spreads, and declining interest rates, as well as property catastrophe losses,” said Robert H. Benmosche, AIG President and Chief Executive Officer. “We also took significant impairments at ILFC, reflecting management’s decision on certain aircraft that would be disposed of prior to the end of their previously estimated life in light of technological developments in the aircraft industry, fleet management announcements by certain airlines, and our newly acquired part-out company.”

Key Stats:

The company’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $1.84 billion in the second quarter, a profit of $269 million in the first quarter and $11.05 billion in the fourth of the last fiscal year.

The company has now fallen short of estimates in the last two quarters. In the second quarter, it missed expectations by 43 cents with net income of 72 cents versus a mean estimate of net income of $1.15 per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 77 cents a share to 68 cents over the last ninety days. The average estimate for the fiscal year is $2.54 per share, down from $3.82 ninety days ago.

Competitors to Watch: Hartford Financial Services (NYSE:HIG), HCC Insurance Hldgs., Inc. (NYSE:HCC), American Financial Group (NYSE:AFG), ACE Limited (NYSE:ACE), The Chubb Corporation (NYSE:CB), The Travelers Companies, Inc. (NYSE:TRV), White Mountains Insurance Group, Ltd. (NYSE:WTM), CNA Financial Corporation (NYSE:CNA), and Loews Corporation (NYSE:L).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)