American International Group Inc (NYSE:AIG) will report financial results for the first quarter ended March 31, 2014, after the market closes on Monday, May 5, 2014. AIG will also host a conference call on Tuesday, May 6, 2014, at 8:00 a.m. EDT to review these results. The call is open to the public and can be accessed via a live, listen-only webcast at http://www.aig.com.
Wall Street anticipates that the insurer will earn $1.07 per share for the quarter, which is $0.27 less than last year's profit of $1.34 per share. iStock expects American International Group to beat Wall Street's consensus number. The iEstimate is $1.13; although, Zacks.com's most recent consensus is just $0.97.
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Sales, unlike earnings, are expected to increase, inching higher by 3.9% year-over-year (YoY). American International Group's consensus revenue estimate for Q1 is $8.89 billion, more than last year's $8.56 billion.
AIG is a global insurance company. The Company provides a range of property casualty insurance, life insurance, retirement products, mortgage insurance and other financial services to customers in more than 130 countries. It diverse offerings include products and services that help businesses and individuals protect their assets, manage risks and provide for retirement security. It earns revenues primarily from insurance premiums, policy fees from universal life insurance and investment products, and income from investments.
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The New York New York based financial firm has done an excellent job managing Wall Street's expectation. In the last four years, AIG topped the consensus estimate 12 of 16 quarterly checkups. On average, the insurance company's results were a whopping 152% more than expected.
As hard as it is to believe, the May quarter has been more impressive. Since 2010, the emerald month provided the biggest, two of the three biggest and four of the seven biggest bullish EPS surprises, averaging 307% more than expected. Despite May's overwhelming bottom line success, the stock's performance spilt the quarter of May announcements, rising and falling in the days surrounding twice.
In all likelihood, the success of Q1 will come down to the company's Mortgage Guaranty new insurance written. With housing slowing in Q1 slowing – blame it on the Polar Vortex – odds are AIG's mortgage insurance operations will follow suit. Since the financial crisis, the rebound in housing has been a key driver for American International Group. If it stalled in the last three months, then you are kicking out a weight-bearing leg in the stool, which could make sales and earning wobble.
Overall: American International Group Inc (NYSE:AIG) is facing some headwinds from the housing industry. However, based on its history and the iEstimate, EPS expectations are probably low enough to make for five consecutive May bullish surprises.
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