Allstate Earnings: Everything You Must Know Now

The Allstate Corporation (NYSE:ALL) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

The Allstate Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 3.52% to $1.47 in the quarter versus EPS of $1.42 in the year-earlier quarter.

Revenue: Decreased 19.04% to $6.77 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Allstate Corporation reported adjusted EPS income of $1.47 per share. By that measure, the company beat the mean analyst estimate of $1.3. It beat the average revenue estimate of $6.6 billion.

Quoting Management: “The strategy of offering unique products and services to distinct consumer segments is working and we are on track to achieve our 2013 operating priorities,” said Thomas J. Wilson, chairman, president and chief executive officer of The Allstate Corporation. “Property-liability net written premium increased in each of our brands with the total growing 2.5% over the prior year quarter. Allstate agency premium growth was the result of slightly higher prices, progress in new business unit growth and improved customer retention in Allstate brand standard auto. Esurance had another strong quarter with policies in force up 36% over the prior year. We maintained our Allstate brand standard auto margins with a combined ratio of 94.2 and made progress improving Allstate brand homeowners returns with an underlying combined ratio of 65.8. Proactive management of the investment portfolio generated a positive total return of 1.2% for the quarter. We also continued reducing our risk to increased interest rates which will reduce future investment earnings.”

Key Stats (on next page)…

Revenue decreased 20.79% from $8.55 billion in the previous quarter. EPS increased 149.15% from $0.59 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.08 to a profit $1.11. For the current year, the average estimate has moved up from a profit of $4.55 to a profit of $4.71 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)