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S&P 500 (NYSE:SPY) component American International Group Inc (NYSE:AIG) reported net income above Wall Street’s expectations for the second quarter. American International Group is a holding company that is engaged in insurance and insurance-related activities in the global marketplace.
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American International Group Inc Earnings Cheat Sheet
Results: Net income for the insurance-multiline rose to $2.33 billion ($1.33 per share) vs. $1.84 billion ($1 per share) in the same quarter a year earlier. This marks a rise of 27% from the year-earlier quarter.
Actual vs. Wall St. Expectations: American International Group Inc beat the mean analyst estimate of 59 cents per share.
Quoting Management: “AIG’s insurance operations and aircraft leasing business posted solid profits this quarter,” said Robert H. Benmosche, AIG President and Chief Executive Officer. “The performance of our businesses and our stock price enabled the U.S. government to continue to profitably reduce its outstanding assistance to AIG, which includes the U.S. Department of the Treasury’s $5.7 billion AIG equity offering in May 2012. The Federal Reserve Bank of New York’s Maiden Lane III loan was also paid in full during the quarter.”
For three consecutive quarters, the company has topped analyst estimates. It beat the mark by 61 cents in the first quarter and by 21 cents in the fourth quarter of the last fiscal year.
Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the third quarter has moved up from 57 cents a share to 63 cents over the last ninety days. For the fiscal year, the average estimate has moved up from $2.98 a share to $3.68 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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