Allstate
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.
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