In its upcoming report, American International Group (AIG) is predicted by Wall Street analysts to post quarterly earnings of $1.68 per share, reflecting an increase of 36.6% compared to the same period last year. Revenues are forecasted to be $6.85 billion, representing a year-over-year increase of 0.1%.
The current level reflects a downward revision of 1.7% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
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.
Analysts expect 'Revenues- Total net investment income' to come in at $990.96 million. The estimate suggests a change of +1.9% year over year.
The average prediction of analysts places 'General Insurance- Net investment income' at $856.10 million. The estimate indicates a change of +10.8% from the prior-year quarter.
Based on the collective assessment of analysts, 'Other Operations- Net investment income and other' should arrive at $86.52 million. The estimate suggests a change of -30.8% year over year.
It is projected by analysts that the 'General Insurance- Net premiums earned' will reach $5.93 billion. The estimate points to a change of -0.2% from the year-ago quarter.
The combined assessment of analysts suggests that 'General Insurance - Loss ratio' will likely reach 60.6%. The estimate is in contrast to the year-ago figure of 60.7%.
Analysts forecast 'General Insurance - Expense ratio' to reach 31.0%. Compared to the present estimate, the company reported 31.9% in the same quarter last year.
According to the collective judgment of analysts, 'General Insurance - Combined ratio' should come in at 91.6%. The estimate compares to the year-ago value of 92.6%.
Analysts' assessment points toward 'General Insurance- Adjusted pre-tax income' reaching $1.35 billion. Compared to the present estimate, the company reported $1.21 billion in the same quarter last year.
View all Key Company Metrics for American International Group here>>>
Shares of American International Group have experienced a change of -2.1% in the past month compared to the +3.6% move of the Zacks S&P 500 composite. 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 >>>> .
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American International Group, Inc. (AIG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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