American International Group
The 10-second takeaway
For the quarter ended June 30 (Q2), American International Group missed estimates on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share grew. GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins dropped, net margins grew.
American International Group chalked up revenue of $8.35 billion. The eight analysts polled by S&P Capital IQ anticipated sales of $8.62 billion on the same basis. GAAP reported sales were 18% lower than the prior-year quarter's $17.13 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $1.12. The 20 earnings estimates compiled by S&P Capital IQ forecast $0.86 per share. Non-GAAP EPS of $1.12 for Q2 were 5.7% higher than the prior-year quarter's $1.06 per share. GAAP EPS of $1.84 for Q2 were 38% higher than the prior-year quarter's $1.33 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 17.0%, 590 basis points worse than the prior-year quarter. Operating margin was 10.4%, 550 basis points worse than the prior-year quarter. Net margin was 19.4%, 580 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $8.68 billion. On the bottom line, the average EPS estimate is $0.82.
Next year's average estimate for revenue is $34.56 billion. The average EPS estimate is $3.93.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 2,869 members out of 3,445 rating the stock outperform, and 576 members rating it underperform. Among 749 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 660 give American International Group a green thumbs-up, and 89 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 $48.09.
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