American International Group Makes Analysts Look Bad

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American International Group (NYS: AIG) reported earnings on Feb. 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), American International Group met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share shrank to a loss.


Margins contracted across the board.

Revenue details
American International Group reported revenue of $8.61 billion. The seven analysts polled by S&P Capital IQ looked for net sales of $8.70 billion on the same basis. GAAP reported sales were 21% lower than the prior-year quarter's $17.43 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.20. The 17 earnings estimates compiled by S&P Capital IQ averaged -$0.07 per share. Non-GAAP EPS of $0.20 for Q4 were 76% lower than the prior-year quarter's $0.82 per share. (The prior-year quarter included $0.07 per share in earnings from discontinued operations.) GAAP EPS were -$2.68 for Q4 against $10.42 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 10.8%, much worse than the prior-year quarter. Operating margin was 2.6%, much worse than the prior-year quarter. Net margin was -28.6%, much worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $8.61 billion. On the bottom line, the average EPS estimate is $0.84.

Next year's average estimate for revenue is $35.95 billion. The average EPS estimate is $3.46.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 2,795 members out of 3,367 rating the stock outperform, and 572 members rating it underperform. Among 717 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 619 give American International Group a green thumbs-up, and 98 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 $39.77.

The article American International Group Makes Analysts Look Bad originally appeared on Fool.com.

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 ofMotley 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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