Will American International Group Beat These Analyst Estimates?

Updated

American International Group (NYS: AIG) is expected to report Q4 earnings on Feb. 21. 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 -49.9% and EPS will shrink to a loss.

The average estimate for revenue is $8.73 billion. On the bottom line, the average EPS estimate is -$0.01.


Revenue details
Last quarter, American International Group chalked up revenue of $8.75 billion. GAAP reported sales were 39% higher than the prior-year quarter's $12.72 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 $1.00. GAAP EPS were $1.13 for Q3 versus -$2.11 per share for the prior-year quarter.

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 22.7%, 4,170 basis points better than the prior-year quarter. Operating margin was 20.3%, 4,620 basis points better than the prior-year quarter. Net margin was 10.5%, 4,190 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $35.52 billion. The average EPS estimate is $3.78.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 2,780 members out of 3,351 rating the stock outperform, and 571 members rating it underperform. Among 739 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 641 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 $38.44.

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The article Will American International Group Beat These Analyst Estimates? 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.

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