American International Group, Inc. (NYSE:AIG) is a global insurance company offering a wide range of property casualty insurance, life insurance, retirement solutions, and other financial services. As a major player in the insurance industry, AIG competes with companies like MetLife and Prudential Financial. AIG is set to release its quarterly earnings on February 11, 2025, after market close. Analysts estimate the earnings per share (EPS) to be $1.33, with projected revenue of approximately $6.74 billion.
Zacks Investment Research analysts have a slightly different outlook, estimating AIG's EPS at $1.26 and revenues at $6.8 billion for the fourth quarter of 2024. Despite a downward revision in earnings estimates over the past 60 days, the consensus suggests a year-over-year growth of 46.8% in revenues and 27.9% in earnings. This indicates that AIG's financial performance may still show improvement compared to the previous year.
Looking ahead to 2025, the Zacks Consensus Estimate projects AIG's revenues at $27 billion, a slight decline of 0.3% from the previous year. However, the EPS for the current year is expected to be $6.45, reflecting a significant increase of approximately 30.3% year over year. AIG has surpassed consensus earnings estimates in three of the last four quarters, which may boost investor confidence.
Despite expectations of a year-over-year decline in earnings and lower revenues for the quarter ending December 2024, the market remains optimistic about AIG's potential to deliver a positive earnings surprise. If AIG exceeds expectations, the stock may see an upward movement. Conversely, a miss on these estimates could lead to a decline in stock value. The sustainability of any immediate price changes will depend on management's discussion of business conditions during the earnings call.
AIG's financial metrics provide insight into its market valuation. The company's price-to-earnings (P/E) ratio is approximately 19.47, indicating the price investors are willing to pay for each dollar of earnings. AIG's price-to-sales ratio stands at about 2.19, and its enterprise value to sales ratio is around 2.59. The debt-to-equity ratio is relatively low at 0.22, suggesting a conservative use of debt. Additionally, AIG maintains a current ratio of about 1.50, indicating its ability to cover short-term liabilities with short-term assets.
