Global insurance giant AIG (NYSE: AIG) will be announcing earnings results this Tuesday after market close. Here’s what to expect.
AIG beat analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $7.06 billion, up 3.2% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ net premiums earned estimates.
Is AIG a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting AIG’s revenue to be flat year on year at $6.92 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $1.90 per share.
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 four times over the last two years.
Looking at AIG’s peers in the multi-line insurance segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Hartford delivered year-on-year revenue growth of 6.7%, beating analysts’ expectations by 49.9%, and Chubb reported revenues up 7.4%, topping estimates by 0.8%. Hartford traded up 2% following the results while Chubb was also up 5.1%.
Read our full analysis of Hartford’s results here and Chubb’s results here.
Investors in the multi-line insurance segment have had steady hands going into earnings, with share prices flat over the last month. AIG is up 3.5% during the same time and is heading into earnings with an average analyst price target of $86.95 (compared to the current share price of $76.18).
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