The 10-second takeaway
For the quarter ended June 30 (Q2), Allstate met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share increased.
Margins expanded across the board.
Allstate tallied revenue of $6.67 billion. The 11 analysts polled by S&P Capital IQ wanted to see revenue of $6.72 billion on the same basis. GAAP reported sales were 2.5% higher than the prior-year quarter's $8.07 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 $0.87. The 24 earnings estimates compiled by S&P Capital IQ predicted $0.57 per share. GAAP EPS were $0.86 for Q2 against -$1.20 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 20.5%, 2,220 basis points better than the prior-year quarter. Operating margin was 8.5%, 2,010 basis points better than the prior-year quarter. Net margin was 5.1%, 1,280 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $6.79 billion. On the bottom line, the average EPS estimate is $0.79.
Next year's average estimate for revenue is $26.90 billion. The average EPS estimate is $3.84.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Allstate is outperform, with an average price target of $37.65.
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