American International Group
The 10-second takeaway
For the quarter ended March 31 (Q1), American International Group met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly. Non-GAAP earnings per share contracted significantly. GAAP earnings per share contracted.
Margins contracted across the board.
American International Group notched revenue of $8.56 billion. The five analysts polled by S&P Capital IQ predicted revenue of $8.64 billion on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $18.44 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 $1.34. The 19 earnings estimates compiled by S&P Capital IQ predicted $0.88 per share. Non-GAAP EPS of $1.34 for Q1 were 19% lower than the prior-year quarter's $1.65 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.) GAAP EPS of $1.49 for Q1 were 13% lower than the prior-year quarter's $1.71 per share. (The prior-year quarter included $0.01 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 29.1%, 370 basis points worse than the prior-year quarter. Operating margin was 23.6%, 650 basis points worse than the prior-year quarter. Net margin was 13.9%, 350 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $8.73 billion. On the bottom line, the average EPS estimate is $0.85.
Next year's average estimate for revenue is $36.02 billion. The average EPS estimate is $3.56.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 2,849 members out of 3,422 rating the stock outperform, and 573 members rating it underperform. Among 717 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 622 give American International Group a green thumbs-up, and 95 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 $42.57.
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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 recommends American International Group. The Motley Fool owns shares of American International Group and has the following options: Long Jan 2014 $25 Calls on 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.