Good news, Q4 EPS is almost over; bad news, Q1 starts soon

American International Group (AIG) announced that they will release their 10K, which will include their Q4 EPS, after the close of business Thursday, February 28th and then have their earnings conference on Friday, February 29th - an unusual sequence of events. Their pre-announcement on February 11th that their auditors had found material weakness in their internal controls that would escalate an expected $1 billion charge to a $5 billion charge has not been built into many of the street estimates (another story), so the charges classification, description and interpretation will be of interest to many. Related, a strong drink will be had by many when this year’s round of audits is over. Another reason AIG is so critical is that it may be the last major issue with “charges” (at least we hope so) to post their Q4 EPS. Therefore, the Q4 index EPS will be able to be used (but not closed until the retailers report is published) with a much higher degree of confidence.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.