The Allstate Earnings: Sandy Can’t Keep The Stock Down
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. Shares are up 2.41%.
The Allstate Corporation Earnings Cheat Sheet
Results: Net income decreased -45.58% to $394 million (59 cents per diluted share) in the quarter versus a net gain of $724 million in the year-earlier quarter.
Revenue: Rose 3.78% to $8.55 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: The Allstate Corporation reported adjusted net income of 59 cents per share. By that measure, the company beat the mean analyst estimate of $-0.03. It beat the average revenue estimate of $6.55 billion.
Quoting Management: “Allstate had a good finish to a strong year despite the costs incurred in the fourth quarter related to Superstorm Sandy,” said Thomas J. Wilson, chairman, president and chief executive officer of The Allstate Corporation. “Our strategy of providing differentiated products to four consumer segments while improving returns is working. The Allstate branded business maintained strong auto profitability, dramatically improved returns in homeowners and began to reduce the negative impact on policies in force related to profit improvement actions. Esurance, Encompass and Allstate Financial maintained their growth trajectories by staying focused on targeted customer value propositions. Proactive investment actions resulted in total returns of over 7 percent for the year. Overall premiums increased and net and operating income more than doubled in 2012 versus 2011. As a result, book value per share increased to $42.39, a 17.2 percent increase for the year,” continued Wilson.
Key Stats (on next page)…
Revenue increased 5.16% from $8.13 billion in the previous quarter. Net income decreased 45.5% from $723 million 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 $1.22 to a profit $1.23. For the current year, the average estimate has moved down from a profit of $4.11 to a profit of $3.71 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.)