Allstate Earnings Cheat Sheet: Two Straight Quarters of Profit Broken by a Loss
S&P 500 (NYSE:SPY) component Allstate Corporation (NYSE:ALL) reported its results for the second quarter. The Allstate Corporation provides insurance on personal property as well as offering casualty insurance, life insurance, retirement and investment products.
Allstate Earnings Cheat Sheet for the Second Quarter
Results: Swung to a loss of $620 million ($1.19 per diluted share) in the quarter. The property and casualty insurance company had net income of $145 million or 27 cents per share in the year earlier quarter.
Revenue: Rose 5.6% to $8.08 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: ALL reported an adjusted net loss of $1.23 per share. By that measure, the company beat the mean analyst estimate of a loss of $1.53 per share.
Quoting Management: “Our key profitability benchmark continued to improve,” said Thomas J. Wilson, chairman, president and chief executive officer of The Allstate Corporation, noting that the company’s underlying Property-Liability combined ratio stood at 88.7 for the first six months of 2011, well within Allstate’s full-year guidance range of 88 to 91. “We also advanced our strategy of broadening our profitable protection relationships by offering differentiated products tailored to the needs of specific customer segments.” However, as anticipated, profit improvement actions in New York and Florida continued to impact growth in auto policies. Allstate Protection’s policies in force declined slightly when compared to the prior year quarter, as a 0.6% reduction in Allstate brand standard auto and a 3.9% reduction in homeowners were only partially offset by increases in specialty lines and Canada.”
Revenue has risen the past four quarters. Revenue increased 4.5% to $8.1 billion in the first quarter. The figure rose 0.4% in the fourth quarter of the last fiscal year from the year earlier and climbed 4.3% in the third quarter of the last fiscal year from the year-ago quarter.
ALL’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $519 million in the first quarter, a profit of $296 million in the fourth quarter of the last fiscal year and $367 million in the third of the last fiscal year.
The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of 93 cents versus a mean estimate of net income of 68 cents per share.
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), American Insurance Group (NYSE:AIG), Erie Indemnity Company (NASDAQ:ERIE), and Gainsco, Inc. (AMEX:GAN).
(Source: Xignite Financials)