Global insurance giant AIG (NYSE: AIG) will be announcing earnings results this Thursday after the bell. Here’s what to look for.
AIG met analysts’ revenue expectations last quarter, reporting revenues of $6.95 billion, up 1.4% year on year. It was a slower quarter for the company, with a significant miss of analysts’ book value per share estimates and a narrow beat of analysts’ EPS estimates.
Is AIG a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting AIG’s revenue to grow 5.5% year on year, improving from its flat revenue in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. AIG has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at AIG’s peers in the insurance segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Chubb delivered year-on-year revenue growth of 11.9%, beating analysts’ expectations by 4.7%, and Hartford reported revenues up 6.1%, topping estimates by 40%. Chubb traded down 1.2% following the results while Hartford was also down 3.7%.
Read our full analysis of Chubb’s results here and Hartford’s results here.
There has been positive sentiment among investors in the insurance segment, with share prices up 7.1% on average over the last month. AIG’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $86.45 (compared to the current share price of $74.00).
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