American International Group (
AIG) looks to be experiencing a “challenging” second quarter, according to financial services firm Janney Montgomery Scott.
Janney’s analysis points to various catastrophes across the countries the insurer operates in as causes for the company’s rough second quarter.
Larry Greenberg, an analyst for Janney, said Tuesday that the firm is reducing its expectations for AIG’s second quarter earnings to $1 a share. The firm had previously projected earnings of $1.14 per share for AIG.
Notably, AIG had missed its projected earnings in the first quarter.
“The second quarter is shaping up to be one of the more challenging periods for catastrophes in a while,” Greenberg said. “In addition to severe weather in the US and wildfires in Canada, there has been severe weather and flooding in other regions of the world and meaningful earthquake losses in Ecuador and Japan.”
Greenberg noted that Janney still has a buy rating on AIG’s stock, reasoning that it “represents very good value at current levels.” Additionally, his outlook for AIG’s earnings per share for 2016 went down from $4.35 to $4.15.
According to a report by
Sonoran Weekly Review, AIG’s stock decreased 0.77%—or $.042—during the last trading session, placing the company’s stock at $53.99. Roughly 8.39 million shares were traded—21.77% higher than average. On the NYSE, AIG has declined 12.26% since November 5, and continues to downtrend. The insurer has underperformed by 11.26% the S&P500.
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