AIG Earnings Outlook: EPS Down But Share Buybacks Continue

Earnings expectations fall for AIG, projecting a 29.1% drop in non-GAAP profit for Q4, while recent share buybacks show commitment to stakeholders.

Date: 17-01-2025

AI Rating: 4

Earnings Per Share (EPS)
AIG is projected to report a non-GAAP profit of $1.27 per share for the fourth quarter, which reflects a significant decline of 29.1% from $1.79 per share year-over-year. The adjusted EPS for the last reported quarter is noted at $1.23, representing a year-over-year dip of 23.6%. For the fiscal year 2024, analysts expect an adjusted EPS of $4.91, down 27.7% from $6.79 in fiscal 2023. However, a rebound is anticipated in fiscal 2025 with an expected increase of 31.4% in adjusted EPS to $6.45.

Revenue Growth
The company's total revenues saw a significant decline of 7.1% year-over-year, amounting to nearly $6.8 billion, which directly impacts the bottom line and reflects operational challenges.

Net Income
AIG experienced a drastic 41% year-over-year decline in income from continuing operations before taxes, which totaled $649 million. This sharp decline is a clear signal of financial distress in terms of profitability.

Overall Outlook
Despite these challenges, AIG's recent share repurchase efforts, amounting to over $4.8 billion during the first three quarters of fiscal 2024, reveal a commitment to returning value to shareholders amidst the declining earnings projections. The stock's consensus rating is moderately bullish, with a mean price target indicating a potential upside from current levels, suggesting that some analysts maintain a positive outlook despite recent downturns.

Stocks: AIG