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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