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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