Will American International Group (AIG) Beat Estimates Again in Its Next Earnings Report?

Core Viewpoint - American International Group (AIG) is positioned well to continue its trend of beating earnings estimates in upcoming reports, particularly due to its strong historical performance in earnings surprises [1]. Earnings Performance - AIG has consistently surpassed earnings estimates, achieving an average beat of 6.01% over the last two quarters [2]. - In the most recent quarter, AIG reported earnings of $1.30 per share against an expectation of $1.26, resulting in a surprise of 3.17% [2]. - For the previous quarter, AIG's earnings of $1.23 per share exceeded the consensus estimate of $1.13, yielding a surprise of 8.85% [2]. Earnings Estimates and Predictions - There has been a favorable adjustment in earnings estimates for AIG, with a positive Zacks Earnings ESP (Expected Surprise Prediction) indicating potential for another earnings beat [5]. - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6]. - AIG currently has an Earnings ESP of +4.40%, suggesting analysts are optimistic about the company's earnings prospects [8]. Earnings ESP Explanation - The Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7]. - A negative Earnings ESP can reduce predictive power but does not necessarily indicate an earnings miss [9]. Importance of Earnings ESP - Many companies beat consensus EPS estimates, but this is not the sole reason for share price gains; some stocks may remain stable even with a miss [10]. - Utilizing the Earnings ESP Filter can help identify the best stocks to buy or sell before earnings reports [10].