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.
Can your retirement portfolio provide you with enough income to last? You'll need more than Allstate. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.
- Add Allstate to My Watchlist.
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 of Motley 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.