American International Group Crushes Earnings Estimates
American International Group (NYS: AIG) reported earnings on May 3. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), American International Group missed estimates on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share expanded.
Margins expanded across the board.
American International Group reported revenue of $8.69 billion. The five analysts polled by S&P Capital IQ predicted a top line of $9.01 billion on the same basis. GAAP reported sales were 5.8% higher than the prior-year quarter's $17.44 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 $1.65. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.92 per share. GAAP EPS were $1.71 for Q1 compared to -$0.35 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 32.8%, 1,310 basis points better than the prior-year quarter. Operating margin was 30.1%, 1,250 basis points better than the prior-year quarter. Net margin was 17.4%, 1,590 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $9.12 billion. On the bottom line, the average EPS estimate is $0.69.
Next year's average estimate for revenue is $36.12 billion. The average EPS estimate is $3.10.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 2,316 members out of 2,896 rating the stock outperform, and 581 members rating it underperform. Among 573 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 456 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 $31.09.
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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.
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