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

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