The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Allstate met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew significantly.
Margins increased across the board.
Allstate chalked up revenue of $6.70 billion. The 11 analysts polled by S&P Capital IQ wanted to see a top line of $6.74 billion on the same basis. GAAP reported sales were 1.4% lower than the prior-year quarter's $8.24 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 $1.46. The 26 earnings estimates compiled by S&P Capital IQ predicted $1.12 per share. GAAP EPS of $1.48 for Q3 were 363% higher than the prior-year quarter's $0.32 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 26.5%, 1,280 basis points better than the prior-year quarter. Operating margin was 14.0%, 1,030 basis points better than the prior-year quarter. Net margin was 8.9%, 690 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $6.68 billion. On the bottom line, the average EPS estimate is $1.03.
Next year's average estimate for revenue is $26.69 billion. The average EPS estimate is $4.49.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Allstate is outperform, with an average price target of $40.90.
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