Allstate Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

Allstate (NYS: ALL) reported earnings on July 31. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q2), Allstate met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew.


Gross margins expanded, operating margins grew, net margins dropped.

Revenue details
 Allstate recorded revenue of $6.86 billion. The 11 analysts polled by S&P Capital IQ hoped for a top line of $6.82 billion on the same basis. GAAP reported sales were 6.1% higher than the prior-year quarter's $8.28 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

EPS details
 EPS came in at $1.12. The 24 earnings estimates compiled by S&P Capital IQ predicted $0.98 per share. Non-GAAP EPS of $1.12 for Q2 were 29% higher than the prior-year quarter's $0.87 per share. GAAP EPS of $0.92 for Q2 were 7.0% higher than the prior-year quarter's $0.86 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

Margin details
 For the quarter, gross margin was 26.2%, 570 basis points better than the prior-year quarter. Operating margin was 13.8%, 530 basis points better than the prior-year quarter. Net margin was 4.9%, 20 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $6.86 billion. On the bottom line, the average EPS estimate is $1.00.

Next year's average estimate for revenue is $27.45 billion. The average EPS estimate is $4.69.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Allstate is outperform, with an average price target of $53.37.

The article Allstate Beats Analyst Estimates on EPS originally appeared on Fool.com.

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. The Motley Fool has no position in any of the stocks mentioned. 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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