American International Group
The 10-second takeaway
For the quarter ended June 30 (Q2), American International Group met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share grew significantly.
Gross margins grew, operating margins dropped, net margins improved.
American International Group chalked up revenue of $8.82 billion. The five analysts polled by S&P Capital IQ expected a top line of $8.82 billion on the same basis. GAAP reported sales were 2.7% higher than the prior-year quarter's $16.68 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 $1.06. The 20 earnings estimates compiled by S&P Capital IQ averaged $0.60 per share. GAAP EPS of $1.33 for Q2 were 33% higher than the prior-year quarter's $1.00 per share. (The prior-year quarter included -$0.03 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 22.8%, 210 basis points better than the prior-year quarter. Operating margin was 15.9%, 130 basis points worse than the prior-year quarter. Net margin was 13.6%, 260 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $8.72 billion. On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $34.99 billion. The average EPS estimate is $4.17.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 2,413 members out of 2,989 rating the stock outperform, and 576 members rating it underperform. Among 590 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 462 give American International Group a green thumbs-up, and 128 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 $37.79.
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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. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend American International Group. 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.