American International Group (AIG) is set to report its Q3 2024 earnings on November 4, 2024. Wall Street expects a year-over-year decline in both earnings and revenue. AIG is forecasted to post an EPS of $1.13, down 29.8% from the previous year, with revenues anticipated at $6.62 billion, a sharp 41.7% drop from the same quarter last year. The insurer's stock has risen 12% year-to-date but has underperformed compared to its industry competitors, which have grown by around 20% over the same period. In the last reported quarter, AIG posted an EPS of $1.16, missing expectations of $1.39 by -16.55%. Should AIG beat these Q3 expectations, the stock could see upward momentum; a miss, however, could drive it lower. Factors Impacting AIG’s Performance: Streamlined Operations and Core Focus: AIG has been focused on streamlining operations by shedding non-core assets to concentrate on core insurance businesses. The recent deconsolidation of Corebridge in Q2 is expected to reduce portfolio volatility, improve cash liquidity, and accelerate capital deployment. Leadership Changes and Cost Discipline: Recent leadership changes are aimed at better aligning operations and increasing efficiencies. Adjustments to the business mix and cost discipline are likely to improve the company’s expense ratio, supporting higher operating margins in the future. Valuation Concerns: AIG currently trades at 11.7x forward earnings, above its five-year median of 9.69x and the industry average of 9.27x. This higher valuation, combined with the company’s significant leverage and relatively low return on equity (ROE) of 9.52% (compared to the industry’s 16.09%), suggests that the stock may be overvalued relative to its peers. Investment Outlook: Positives for Current Investors: AIG’s streamlined focus on core insurance operations and enhanced expense management could yield long-term benefits, making it an attractive hold for existing investors looking for stable growth and improved operating margins. Caution for New Investors: With AIG’s relatively high valuation, lower ROE, and significant debt-to-capital ratio, new investors may prefer to wait for a more favorable entry point. The upcoming earnings release may provide additional insights into the company’s operational efficiency and progress in achieving its strategic goals. In summary, AIG’s focus on core insurance activities and operational improvements are promising for long-term growth, but higher-than-average valuation and leverage suggest that potential investors should approach with caution until more clarity from the earnings report. Palantir (PLTR) Q3 2024 Earnings Preview Earnings Release Date: November 4, 2024 (After Market Close) Expected EPS: $0.09 Expected Revenue: $703.7 million (+26.1% YoY) Palantir Technologies (NYSE: PLTR) will report its Q3 2024 earnings today after the market closes. Last quarter, Palantir exceeded revenue expectations by 3.9%, reporting $678.1 million in revenue, an increase of 27.2% year-over-year. For Q3, analysts project Palantir’s revenue to grow 26.1% YoY to $703.7 million, with adjusted earnings expected at $0.09 per share.