Q2 Earnings Surpass Expectations for American International Group, Consolidated Edison, and Activision Blizzard

Strategic Insights -

Despite facing challenges in insurance operations, American International Group Inc. (AIG) reported significant earnings, while Consolidated Edison Inc. (ED) met expectations, and Activision Blizzard Inc. (ATVI) narrowly beat the Zacks Consensus Estimate. These companies' second-quarter earnings results reflect a complex interplay of factors, including restructuring efforts, shifting market conditions, and increased competition.

Key Takeaways:

  • American International Group Inc. (AIG) reported second-quarter operating earnings of $1.34 billion, surpassing the Zacks Consensus Estimate of 99 cents per share. This achievement was driven by stability in insurance operations and a 24% year-over-year increase in premiums, deposits, and other considerations.
  • Consolidated Edison Inc. (ED) met the Zacks Consensus Estimate for the second quarter, with an earnings per share (EPS) of 51 cents. The company's performance was influenced by higher rates authorizing cost recovery and lower net interest expenses.
  • Activision Blizzard Inc. (ATVI) narrowly beat the Zacks Consensus Estimate by 2 cents, with an EPS of 5 cents. Earnings decreased due to declining revenue growth and contracting operating margins, partly attributed to fewer releases and weakness at retail.
  • AIG's General Insurance business recorded catastrophe losses of $287 million, despite managing to earn $955 million compared to $1.0 billion in the year-ago quarter.
  • Consolidated Edison's net income increased to $183 million from $150 million, driven by lower costs at its utilities and stronger-than-expected performance at its competitive energy businesses.
  • Activision's sales of digital online channels grew more than 20% year-over-year, partially offsetting the decline in console sales.
  • Activision Blizzard has stored 20 million copies of the Call of Duty game, a milestone potentially driving revenue in the second half of the year.

Statistics:

  • American International Group Inc. (AIG) reported a GAAP net loss of $2.66 billion or $3.96 per share, compared to a net income of $1.82 billion or $2.30 per share in the year-ago quarter.
  • Consolidated Edison Inc. (ED) reported earnings per share (EPS) of 65 cents, compared to 55 cents per share in the year-ago quarter, primarily due to higher rates authorizing cost recovery.
  • Activision Blizzard Inc. (ATVI) reported non-GAAP revenue of $683.0 million in the second quarter, down 14.7% year-over-year, mainly due to declining console sales.
  • The weighted average number of common shares for Consolidated Edison Inc. (ED) was 281 million and 274 million for the three months ended June 30, 2010, and 2009, respectively.

Sources:

  • Zacks.com
  • American International Group Inc. (AIG)
  • Consolidated Edison Inc. (ED)
  • Activision Blizzard Inc. (ATVI)
  • NPD Group