American International Group Leaves Analysts Behind
American International Group (NYS: AIG) filed its 10-K on Feb. 23. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), American International Group crushed expectations on both revenues and earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped significantly.
Margins improved across the board.
American International Group recorded revenue of $17.41 billion. The three analysts polled by S&P Capital IQ expected net sales of $13.19 billion on the same basis. GAAP reported sales were 20% lower than the prior-year quarter's $21.81 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.82. The 15 earnings estimates compiled by S&P Capital IQ averaged $0.65 per share on the same basis. GAAP EPS of $10.42 for Q4 were 35% lower than the prior-year quarter's $16.07 per share.
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%, 2,000 basis points better than the prior-year quarter. Operating margin was 18.9%, 2,010 basis points better than the prior-year quarter. Net margin was 113.6%, 6,230 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $13.42 billion. On the bottom line, the average EPS estimate is $0.67.
Next year's average estimate for revenue is $49.40 billion. The average EPS estimate is $2.66.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 2,280 members out of 2,868 rating the stock outperform, and 588 members rating it underperform. Among 592 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 475 give American International Group a green thumbs-up, and 117 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 $27.36.
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At the time this article was published 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. 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.