It's Showtime for American International Group

Seth Jayson, The Motley Fool
Updated

American International Group (NYS: AIG) is expected to report Q3 earnings on Nov. 1. Here's what Wall Street wants to see:

The 10-second takeaway
 Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict American International Group's revenues will contract -32.0% and EPS will compress -154.4%.

The average estimate for revenue is $8.65 billion. On the bottom line, the average EPS estimate is $0.87.


Revenue details
 Last quarter, American International Group reported revenue of $8.82 billion. GAAP reported sales were 2.7% higher than the prior-year quarter's $16.68 billion.

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

EPS details
 Last quarter, non-GAAP EPS came in at $1.06. GAAP EPS of $1.33 for Q2 were 33% higher than the prior-year quarter's $1.00 per share.

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

Recent performance
 For the preceding quarter, gross margin was 22.8%, 210 basis points better than the prior-year quarter. Operating margin was 15.9%, 130 basis points worse than the prior-year quarter. Net margin was 13.6%, 260 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $35.70 billion. The average EPS estimate is $4.40.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 2,549 members out of 3,122 rating the stock outperform, and 573 members rating it underperform. Among 643 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 526 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 $37.79.

The article It's Showtime for American International Group 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 owns shares of American International Group and has the following options: long JAN 2014 $25.00 calls on American International Group. Motley Fool newsletter services recommend 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 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement