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Wall Street analysts expect American International Group (AIG) to post quarterly earnings of $1.05 per share in its upcoming report, which indicates a year-over-year decline of 40.7%. Revenues are expected to be $6.79 billion, down 45.5% from the year-ago quarter.
The consensus EPS estimate for the quarter has undergone an upward revision of 1.8% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
Given this perspective, it's time to examine the average forecasts of specific American International Group metrics that are routinely monitored and predicted by Wall Street analysts.
According to the collective judgment of analysts, 'General Insurance- Net premiums earned' should come in at $5.86 billion. The estimate indicates a change of +1.3% from the prior-year quarter.
Analysts forecast 'General Insurance- Net investment income' to reach $809.75 million. The estimate indicates a year-over-year change of +6.3%.
The average prediction of analysts places 'Adjusted Revenue- Other Operations- Net investment income' at $96.73 million. The estimate points to a change of +303.1% from the year-ago quarter.
Analysts expect 'Revenue- Net investment income' to come in at $933.40 million. The estimate points to a change of -76.1% from the year-ago quarter.
The combined assessment of analysts suggests that 'Loss Ratio - Total General Insurance' will likely reach 65.6%. The estimate is in contrast to the year-ago figure of 58%.
It is projected by analysts that the 'Combined Ratio - Total General Insurance' will reach 96.7%. The estimate is in contrast to the year-ago figure of 89.8%.
The consensus estimate for 'Expense Ratio - Total General Insurance' stands at 31.1%. The estimate compares to the year-ago value of 31.8%.
The consensus among analysts is that 'Adjusted pre-tax income- General Insurance' will reach $990.90 million. Compared to the present estimate, the company reported $1.36 billion in the same quarter last year.
View all Key Company Metrics for American International Group here>>>
Shares of American International Group have demonstrated returns of -2.9% over the past month compared to the Zacks S&P 500 composite's -4.3% change. With a Zacks Rank #3 (Hold), AIG is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>