S&P 500 (NYSE:SPY) component American International Group, Inc. (NYSE:AIG) will unveil its latest earnings on Thursday, August 4, 2011. American International Group is a holding company which, through its subsidiaries, is engaged in insurance and insurance related activities in the global marketplace.
American International Group, Inc. Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.01 per share, a decline of 49.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 59 cents. Between one and three months ago, the average estimate moved up, but has dropped from $1.11 during the last month. For the year, analysts are projecting profit of $3.73 per share, a swing from net loss of $6.57 last year.
Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported net income of $1.30 per share against a mean estimate of a loss of 15 cents, and the quarter before, the company exceeded forecasts by 78 cents with net loss of $16.20 versus a mean estimate of a loss of $16.98.
Wall St. Revenue Expectations: On average, analysts predict $13.76 billion in revenue this quarter, a decline of 20.9% from the year ago quarter. Analysts are forecasting total revenue of $53.33 billion for the year, a decline of 31% from last year’s revenue of $77.3 billion.
Analyst Ratings: Analysts seem relatively indifferent about American International Group with eight of 13 analysts surveyed maintaining a hold rating.
The company’s revenue has now risen for two straight quarters. In first quarter, revenue increased 6.8% to $17.44 billion from the year earlier quarter. In the fourth quarter of the last fiscal year, the figure rose 8.6%.
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).
Stock Price Performance: During May 4, 2011 to July 29, 2011, the stock price had fallen $2.94 (-9.3%) from $31.64 to $28.70. The stock price saw one of its best stretches over the last year between December 15, 2010 and December 22, 2010 when shares rose for six-straight days, rising 8.9% (+$3.83) over that span. It saw one of its worst periods between April 5, 2011 and April 19, 2011 when shares fell for 11-straight days, falling 8.2% (-$2.86) over that span. Shares are down $19.58 (-40.6%) year to date.
(Source: Xignite Financials)