American International Group
The 10-second takeaway
For the quarter ended March 31 (Q1), American International Group missed estimates on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share expanded.
Margins expanded across the board.
American International Group reported revenue of $8.69 billion. The five analysts polled by S&P Capital IQ predicted a top line of $9.01 billion on the same basis. GAAP reported sales were 5.8% higher than the prior-year quarter's $17.44 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.65. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.92 per share. GAAP EPS were $1.71 for Q1 compared to -$0.35 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 32.8%, 1,310 basis points better than the prior-year quarter. Operating margin was 30.1%, 1,250 basis points better than the prior-year quarter. Net margin was 17.4%, 1,590 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $9.12 billion. On the bottom line, the average EPS estimate is $0.69.
Next year's average estimate for revenue is $36.12 billion. The average EPS estimate is $3.10.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 2,316 members out of 2,896 rating the stock outperform, and 581 members rating it underperform. Among 573 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 456 give American International Group a green thumbs-up, and 117 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on American International Group is outperform, with an average price target of $31.09.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.