Allstate Crushes Earnings Estimates
Allstate (NYS: ALL) reported earnings on May 2. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Allstate met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share expanded significantly.
Margins improved across the board.
Allstate reported revenue of $6.63 billion. The eight analysts polled by S&P Capital IQ expected a top line of $6.65 billion on the same basis. GAAP reported sales were 3.2% higher than the prior-year quarter's $8.10 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.42. The 22 earnings estimates compiled by S&P Capital IQ anticipated $1.10 per share. GAAP EPS of $1.53 for Q1 were 58% higher than the prior-year quarter's $0.97 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 26.6%, 560 basis points better than the prior-year quarter. Operating margin was 14.5%, 390 basis points better than the prior-year quarter. Net margin was 9.2%, 280 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $6.74 billion. On the bottom line, the average EPS estimate is $0.93.
Next year's average estimate for revenue is $27.08 billion. The average EPS estimate is $3.87.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Allstate is outperform, with an average price target of $33.58.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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