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Will American International's (AIG) Q2 Earnings Hit a Pothole?
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American International Group, Inc. (AIG - Free Report) is set to report its second-quarter 2024 results on Jul 31, after the closing bell.
The Zacks Consensus Estimate for second-quarter earnings is currently pegged at $1.39 per share, implying a decrease of 20.6% from the year-ago reported number. The estimate was revised downward by four analysts in the past month against one movement in the opposite direction, resulting in a decrease of 21.9% from $1.78 per share. The Zacks Consensus Estimate for second-quarter revenues is currently pegged at almost $12.2 billion, suggesting a 6.9% fall from the year-ago actuals.
Image Source: Zacks Investment Research
AIG beat the consensus estimate for earnings in each of the trailing four quarters, with the average surprise being 9.2%, as you can see below.
American International Group, Inc. Price and EPS Surprise
Our proven model does not conclusively predict an earnings beat for AIG this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate currently stands at $1.39 per share, in line with the Zacks Consensus Estimate.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: AIG currently carries a Zacks Rank #3.
Now, let’s see how things have shaped up before the second-quarter earnings announcement.
More Q2 Key Estimates
The Zacks Consensus Estimate for the combined ratio for total General Insurance is pegged at 92%, up from 90.9% in the year-ago period. The expense ratio is pegged at 32%, up from 31.6% a year ago. The Zacks Consensus Estimate for the segment’s adjusted pre-tax income for the second quarter indicates a decrease of 4.7% from the year-ago period.
Also, the consensus mark for adjusted pre-tax income from institutional markets indicates a 14.6% decrease from a year ago. These are likely to have affected the bottom line, making an earnings beat uncertain.
Further, the Zacks Consensus Estimate for total premiums indicates a 35.9% decrease from the year-ago period. This is expected to have AIG’s top line in the second quarter, leading to a year-over-year decline.
Nevertheless, the consensus mark for adjusted pre-tax income for the overall Life and Retirement business is pegged at $1.04 billion, signaling a jump of 4.9% from the prior-year quarter on the back of an increase in base portfolio spread income. This is likely to have partially offset the negatives.
Price Performance
AIG's stock has gained 14% in the year-to-date period compared with the industry’s rally of 17.6%. Additionally, the stock underperformed the S&P 500 Index, which grew 14.6% during the same period.
YTD Price Performance
Image Source: Zacks Investment Research
Stocks to Consider
While an earnings beat looks uncertain for AIG, here are some companies from the broader Finance space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
The Zacks Consensus Estimate for Palomar’s bottom line for the to-be-reported quarter is pegged at $1.12 per share, which increased by a penny over the past week. The estimate signals 30.2% year-over-year growth. The consensus estimate for PLMR’s revenues is pegged at $120.4 million, indicating a 34.9% increase from a year ago.
Oscar Health, Inc. (OSCR - Free Report) has an Earnings ESP of +3.23% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for Oscar Health’s bottom line for the to-be-reported quarter is pegged at 16 cents per share, which signals a massive improvement from year-ago loss of 7 cents. The consensus estimate for OSCR’s revenues is pegged at $2.2 billion, a 43.4% jump from a year ago. It beat earnings estimates in each of the past four quarters, with an average surprise of 62.3%.
Prudential Financial, Inc. (PRU - Free Report) has an Earnings ESP of +0.11% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Prudential's bottom line for the to-be-reported quarter is pegged at $3.43 per share, suggesting a 16.7% year-over-year increase. The estimate remained stable over the past week. The consensus estimate for PRU’s revenues is pegged at $13.8 billion, predicting a 9% increase from the year-ago period.
Image: Bigstock
Will American International's (AIG) Q2 Earnings Hit a Pothole?
American International Group, Inc. (AIG - Free Report) is set to report its second-quarter 2024 results on Jul 31, after the closing bell.
The Zacks Consensus Estimate for second-quarter earnings is currently pegged at $1.39 per share, implying a decrease of 20.6% from the year-ago reported number. The estimate was revised downward by four analysts in the past month against one movement in the opposite direction, resulting in a decrease of 21.9% from $1.78 per share. The Zacks Consensus Estimate for second-quarter revenues is currently pegged at almost $12.2 billion, suggesting a 6.9% fall from the year-ago actuals.
AIG beat the consensus estimate for earnings in each of the trailing four quarters, with the average surprise being 9.2%, as you can see below.
American International Group, Inc. Price and EPS Surprise
American International Group, Inc. price-eps-surprise | American International Group, Inc. Quote
Q2 Earnings Whispers
Our proven model does not conclusively predict an earnings beat for AIG this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate currently stands at $1.39 per share, in line with the Zacks Consensus Estimate.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: AIG currently carries a Zacks Rank #3.
Now, let’s see how things have shaped up before the second-quarter earnings announcement.
More Q2 Key Estimates
The Zacks Consensus Estimate for the combined ratio for total General Insurance is pegged at 92%, up from 90.9% in the year-ago period. The expense ratio is pegged at 32%, up from 31.6% a year ago. The Zacks Consensus Estimate for the segment’s adjusted pre-tax income for the second quarter indicates a decrease of 4.7% from the year-ago period.
Also, the consensus mark for adjusted pre-tax income from institutional markets indicates a 14.6% decrease from a year ago. These are likely to have affected the bottom line, making an earnings beat uncertain.
Further, the Zacks Consensus Estimate for total premiums indicates a 35.9% decrease from the year-ago period. This is expected to have AIG’s top line in the second quarter, leading to a year-over-year decline.
Nevertheless, the consensus mark for adjusted pre-tax income for the overall Life and Retirement business is pegged at $1.04 billion, signaling a jump of 4.9% from the prior-year quarter on the back of an increase in base portfolio spread income. This is likely to have partially offset the negatives.
Price Performance
AIG's stock has gained 14% in the year-to-date period compared with the industry’s rally of 17.6%. Additionally, the stock underperformed the S&P 500 Index, which grew 14.6% during the same period.
YTD Price Performance
Image Source: Zacks Investment Research
Stocks to Consider
While an earnings beat looks uncertain for AIG, here are some companies from the broader Finance space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
Palomar Holdings, Inc. (PLMR - Free Report) has an Earnings ESP of +1.34% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Palomar’s bottom line for the to-be-reported quarter is pegged at $1.12 per share, which increased by a penny over the past week. The estimate signals 30.2% year-over-year growth. The consensus estimate for PLMR’s revenues is pegged at $120.4 million, indicating a 34.9% increase from a year ago.
Oscar Health, Inc. (OSCR - Free Report) has an Earnings ESP of +3.23% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for Oscar Health’s bottom line for the to-be-reported quarter is pegged at 16 cents per share, which signals a massive improvement from year-ago loss of 7 cents. The consensus estimate for OSCR’s revenues is pegged at $2.2 billion, a 43.4% jump from a year ago. It beat earnings estimates in each of the past four quarters, with an average surprise of 62.3%.
Prudential Financial, Inc. (PRU - Free Report) has an Earnings ESP of +0.11% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Prudential's bottom line for the to-be-reported quarter is pegged at $3.43 per share, suggesting a 16.7% year-over-year increase. The estimate remained stable over the past week. The consensus estimate for PRU’s revenues is pegged at $13.8 billion, predicting a 9% increase from the year-ago period.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.