Allstate Corp Earnings Cheat Sheet: Net Income Beats Analysts’ Expectations

S&P 500 (NYSE:SPY) component Allstate Corporation (NYSE:ALL) posted lower net income in the third quarter compared with a year-earlier period. Allstate provides insurance on personal property as well as offering casualty insurance, life insurance, retirement, and investment products.

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Allstate Earnings Cheat Sheet for the Third Quarter

Results: Net income for the property and casualty insurance company fell to $165 million (32 cents per share) vs. $367 million (68 cents per share) a year earlier. This is a decline of 55% from the year earlier quarter.

Revenue: Rose 4.2% to $8.24 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: ALL beat the mean analyst estimate of 11 cents per share. It beat the average revenue estimate of $6.74 billion.

Quoting Management: “Maintaining auto insurance profitability and proactively managing our investment portfolio enabled us to overcome an increase of $691 million in catastrophe losses from the third quarter of 2010 and still earn a profit,” said Thomas J. Wilson, chairman, president and chief executive officer of The Allstate Corporation. “Progress was made in improving auto insurance profitability in New York and Florida and raising underlying returns in homeowners insurance. A small decline in auto insurance policies during the last twelve months is related to the impact of improving profitability in New York and Florida and a 4% decline in homeowners policies.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 5.6% to $8.08 billion in the second quarter. The figure rose 4.5% in the first quarter from the year earlier and climbed 0.4% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 30 cents in the second quarter and by 25 cents in the first quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 95 cents a share to 94 cents over the last sixty days. Over the past sixty days, the average estimate for the fiscal year has reached 78 cents abs per share, a decline from $1.39.

Competitors to Watch: Horace Mann Educators Corp. (NYSE:HMN), The Progressive Corp. (NYSE:PGR), Safety Insurance Group, Inc. (NASDAQ:SAFT), 21st Century Holding Co. (NASDAQ:TCHC), The Travelers Companies, Inc. (NYSE:TRV), Hilltop Holdings Inc. (NYSE:HTH), Hallmark Financial Services, Inc. (NASDAQ:HALL), Tower Group, Inc. (NASDAQ:TWGP), Erie Indemnity Company (NASDAQ:ERIE), and Gainsco, Inc. (AMEX:GAN).

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(Source: Xignite Financials)

 

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