American International Group Earnings Preview: Revenue, Earnings Expected to Fall

American International Group AIG releases its next round of earnings this Thursday, August 4, 2011. Here's Benzinga's advanced look at American International Group's second quarter earnings report.

Earnings and Revenue:

Analysts are predicting an EPS reading of $1.01/share and revenues of $13.76 billion. Investors will be keen to see how this quarter's numbers stack up against the year-ago quarter's positive EPS of $1.99/share on revenues of $17.4 billion. Investors are bracing themselves for Thursday when we'll learn if American International Group reports lower EPS and slightly reduced revenue from the year-ago quarter, as analysts are predicting.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

As of July 29, 2011, American International Group's current share price was $28.70. Shares are down 40.6% year to date. For a full 12 months, the return has declined by 16.9%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

• Long-term shareholders are already wary of 12-month losses prior to the announcement

Average Stock Rating:

The average rating by analysts for American International Group is a Hold. Over the past three months this rating's strength has declined slightly.

Competitors:

Want to check out the performance of American International Group closest competitors? Take a look at some of the company's peers in the financials sector.

• ACE ACE: Moderate Buy with a $2.01 recent quarter EPS
• American Financial Group AFG: Moderate Buy with a $0.81 recent quarter EPS
• Chubb CB: Hold with a $1.27 recent quarter EPS
• CNA CNA: Hold with a $0.80 recent quarter EPS

American International Group is in the insurance-multiline industry, which has experienced price/earnings growth of 0.1%.

Finally, a description of the company's main areas of operation: American International Group is a holding company which, through its subsidiaries, is engaged in insurance and insurance related activities in the global marketplace.

Take Action:

That's your advanced look at American International Group's upcoming earnings numbers -- be ready to take quick action if the company's report contains any surprises. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

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