AIG Quarterly Earnings APPROACH

S&P 500 (NYSE:SPY) component American Intl Group (NYSE:AIG) will unveil its latest earnings tomorrow, Thursday, August 2, 2012. American International Group is a holding company that is engaged in insurance and insurance-related activities in the global marketplace.

American Intl Group Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 59 cents per share, a decline of 18.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 62 cents. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. Analysts are projecting profit to rise by 261.8% versus last year to $3.69.

Past Earnings Performance: The company is looking to beat analyst estimates for the third quarter in a row. Last quarter, it beat estimates with profit of $1.65 per share against the mean estimate of $1.04. In the prior quarter, the company reported net income of 82 cents.

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A Look Back: In the first quarter, profit rose 1092.6% to $3.21 billion ($1.71 a share) from $269 million (-35 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 5.8% to $18.44 billion from $17.44 billion.

Stock Price Performance: Between May 2, 2012 and July 31, 2012, the stock price fell $3.07 (-8.94%), from $34.34 to $31.27. The stock price saw one of its best stretches over the last year between February 17, 2012 and March 5, 2012, when shares rose for 11 straight days, increasing 11.6% (+$3.16) over that span. It saw one of its worst periods between July 17, 2012 and July 25, 2012 when shares fell for seven straight days, dropping 6.6% (-$2.14) over that span.

Wall St. Revenue Expectations: Analysts are projecting a decline of 2.1% in revenue from the year-earlier quarter to $8.84 billion.

Key Stats:

On the top line, the company is looking to build on last quarter’s revenue increase, which snapped a string of revenue drops. Revenue fell 16.5% in the second quarter of the last fiscal year, 33.4% in the third quarter of the last fiscal year and 19.7% in the fourth quarter of the last fiscal year before climbing in the first quarter.

Analyst Ratings: There are 10 out of 18 analysts surveyed (55.6%) rating American Intl Group a buy. Over the last three months, the stock’s average rating has increased from hold to moderate buy.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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