| As of Thursday, November 12th: |
As of October 1st, the earnings growth rate was at -24.7%.Of the 458 S&P 500 companies who have reported Q3, 80% beat estimates, 6% were in-line, and 14% were below estimates. The blended earnings growth rate for the S&P 500 for Q3 2009 is currently at -13.9%. (Data provided by Thomson Reuters)
LATEST EARNINGS RESULTS
- Job Market Politics to Keep Interest Rates Low
- AIG, Symbol of Crisis, Watches Its Stock Zoom Back
- Disney Profit, Sales Top Street Forecasts; Shares Jump
- Bill Gates Praises Apple's Jobs for 'Saving the Company'
- Cities With the Most Home Price Reductions
- Cramer: The Real Reason Stocks Fell Thursday
- Is Euphoric Market Ignoring Warning Signs?
- Video Game Sales Plunge, but Have They Hit Bottom?
- Despite Rhetoric, Obama Has Few Options to Boost Jobs
- Microsoft's Bill Gates Praises Apple's Steve Jobs For 'Saving the Company'
- Gold Is a Bad Inflation Hedge—Like Oil: Stock Picker
- Intel's Andy Bryant Offers An Explanation
- US 'Actively Working' on Weaker Dollar: Fund Manager
- Options Boil on Biotech Buyout Rumors
- Warren Buffett's $100,000 Offer and $500,000 Advice for Columbia Business School Students
- Activision Blizzard's "Modern Warfare 2" Sales Break Records
- 5-Star Manager's 5 Stocks for Changing Markets
- What's The Forecast from Retailers? Proceed With Caution
MOST SHARED
- Warren Buffett and Bill Gates Share Their 'Optimism' With Eager Columbia Business Students
- Pharma & Social Media
- Cities With the Most Home Price Reductions
- China Fourth Quarter Growth Could Hit 10%: Official
- Warren Buffett's $100,000 Offer and $500,000 Advice for Columbia Business School Students
- Disney Profit, Sales Top Street Forecasts; Shares Jump
- Microsoft's Bill Gates Praises Apple's Steve Jobs For 'Saving the Company'
- Housing Recovery 'Still In Uncharted Territory': HUD Secretary
- Despite Rhetoric, Obama Has Limited Options To Boost Jobs
- Is Euphoric Market Ignoring Warning Signs?
Text Size 
American International Group reported a quarterly loss of 51 cents a share, falling far short of analysts' estimates, which had projected a profit for the company.
 |
It marked the company's third consecutive quarterly net loss, as the firm was hurt again by the write-down of derivatives linked to bad mortgage investments.
The world's largest insurer also stumbled on lower insurance earnings and losses in mortgage units.
The company also disclosed that some employees have received Wells notices, indicating the U.S. Securities and Exchange Commission is considering civil action. The Department of Justice is also probing the company.
Shares of AIG [AIG
Loading...
()
], which closed Wednesday down 2.68 percent at $29.09, were about 10 percent lower in extended electronic trading.
AIG said that, excluding one-time items, it lost 51 cents a share on sales of $19.9 billion in the second quarter.
Last year the insurance giant earned $1.77 a share on a topline of $31.15 billion.
A consensus estimate of analysts who follow the company expected earnings of 63 cents a share and revenue of $31.49 billion.
"Considering the headline numbers the stock reaction is reasonable. All these financial companies that were trafficking in the toxic waste, have to find a way to replace these revenues," said William Smith, CEO of Smith Asset Management. "If you are an investment bank, there are a lot more avenues to take, whereas with insurance companies it will be more difficult."
AIG said its second-quarter net loss including items was $5.36 billion, a loss of $2.06 a share, compared with net income of $4.28 billion, or $1.64 a share, in the year-earlier quarter.
The company recorded $5.57 billion in second quarter unrealized market valuation losses on credit default swaps, the same area that triggered losses over the past two quarters. (Video: David Faber's analysis of AIG's earnings)
Chief Executive Robert Willumstad, less than eight weeks in the job, plans to unveil a plan for the troubled firm by late September, later than the early September date he initially hinted at.
"We understand the challenges ahead of us and are developing a plan to see AIG through these difficult time and rebuild shareholder value," Willumstad said in AIG's earnings statement.
Some analysts said the large loss was a surprise, but AIG still held value.
"They may have taken a writedown in the same vein as Merrill Lynch did. It looks like the new CEO took what I call a kitchen sink quarter," said Keith Wirtz, president and chief investment officer of Fifth Third Asset Management.
Grim Operating Results
AIG said general insurance operating income fell 54 percent to $1.39 billion, reflecting a 28.3 percent drop in investment income.
The division wrote $12.22 billion in net premiums in the quarter, a slight increase over last year.
Income from life insurance and retirement services also slipped, falling 10 percent to $2.6 billion.
AIG, best known for its insurance businesses, also has lending units, an asset management division and aircraft leasing.
Its financial services business reported a $5.88 billion loss for the quarter, but aircraft leasing—long one of the company's most profitable units, recorded record operating income of $352 million in the quarter.
Consumer finance, a division that offered home mortgages, posted a $22 million operating loss.
- Wire services contributed to this report.
Print
Email
- Nordstrom Earnings Miss Forecasts; Shares Take Hit
Nordstrom reported earnings that missed analysts expectations by a penny but beat on revenue, causing the company's shares to fall in after-hours trading.
- Wal-Mart Holiday Forecast Light, Profit Beats
Wal-Mart Stores posted a higher-than-expected quarterly profit, but forecast earnings during the key holiday quarter that could miss Wall Street estimates as its customers face rising unemployment.
- Kohl's Profit Beats Street, But Outlook Falls Short
Department store operator Kohl's Corp reported a larger-than-expected quarterly profit Thursday, but gave an outlook below Wall Street estimates for the period that includes the key holiday season.
- Nordstrom Earnings Miss Forecasts; Shares Take Hit
- Vivendi Profit Up More Than 5%, Keeps 2009 Goals
Europe's largest entertainment group Vivendi delivered a better than expected 5.1 percent rise in its third-quarter underlying profit on Thursday, and said it was sticking to its 2009 forecast.
- Vivendi Profit Up More Than 5%, Keeps 2009 Goals
- Cost Cuts Help BT to Raise Full-Year Guidance
- Applied Materials Profit, Sales Top Wall Street Forecasts
- Macy's Loss Beats Estimates, But Shares Fall on Outlook
- Vodafone Extends Cost-Cutting Scheme, Hits Targets
- Tyco International Profit Falls Less Than Expected
- EA Profit Beats Street, Announces Job Cuts
- Priceline Crushes Profit Forecasts; Shares Jump
- Berkshire Hathaway Says Net Income Tripled
- Sun Micro Sales Fall as Oracle Deal Remains Delayed
- AIG in the Black Again, Operating Profit Tops View
- Starbucks Profit Beats Forecasts; Shares Rise
- Fannie Mae Seeks $15 Billion in Aid After Posting Loss
- Nvidia Profit, Sales Top Wall Street's Forecast
- CBS Beats Expectations on Improved Ad Market
- Cisco CEO: Tech Sector Hit Bottom, Recovery Under Way
Data is a real-time snapshot *Data is delayed at least 15 minutes