S&P 500 (NYSE:SPY) component Allstate Corporation (NYSE:ALL) reported net income above Wall Street’s expectations for the first quarter. 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 First Quarter
Results: Net income for the insurance-property and casualty rose to $766 million ($1.53 per share) vs. $519 million (98 cents per share) in the same quarter a year earlier. This marks a rise of 47.6% from the year-earlier quarter.
Revenue: Rose 3.3% to $8.36 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Allstate Corporation beat the mean analyst estimate of $1.12 per share. It beat the average revenue estimate of $6.44 billion.
Quoting Management: “Our focus on improving returns while executing a strategy to offer unique products to different customer segments generated strong results in the first quarter,” said Thomas J. Wilson, chairman, president and chief executive officer of The Allstate Corporation. “Maintaining margins in auto insurance and continued implementation of our homeowner profit improvement program resulted in solid returns in our property-casualty business.”
The company has now topped analyst estimates for the last four quarters. It beat the mark by 54 cents in the fourth quarter of the last fiscal year, by 5 cents in the third quarter of the last fiscal year, and by 30 cents in the second quarter of the last fiscal year.
Revenue has increased for four quarters in a row. Revenue increased 1.8% to $8.24 billion in the fourth quarter of the last fiscal year. The figure rose 4.2% in the third quarter of the last fiscal year from the year earlier and climbed 5.6% in the second quarter of the last fiscal year from the year-ago quarter.
Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 91 cents a share to 89 cents over the last ninety days. For the fiscal year, the average estimate has moved up from $3.64 a share to $3.75 over the last ninety days.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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