Allstate (NYSE:ALL) announced its results for the most recent quarter on October 31, 2012. Allstate provides insurance on personal property as well as offering casualty insurance, life insurance, retirement, and investment products.

Earnings play an important role in measuring the appropriate valuation for a stock. Investors should be cautious if the company's stock price is high but it consistently has low earnings.SEE: Can Earnings Guidance Accurately Predict The Future?

The Numbers:

Allstate's latest numbers were good, as the company announced EPS and revenues that came in ahead predictions. The company reported $1.48 per share versus the $1.15 per share estimate and revenues of $8.13 billion versus the $6.44 billion estimate. EPS rose 335.3% while revenue declined 1.4% from the same period last year. Slumping revenue in the last quarter ends Allstate's streak of four consecutive quarters of revenue increases. Allstate's profit rose 313.1% from last year's figures to $723 million during the third quarter.


Management Quote:

"We are on pace to achieve our 2012 operating priorities which resulted in strong financial performance in the third quarter with net income of $723 million. Our strategy of serving four distinct customer segments is also working as the Esurance and Encompass brands increased policies in force," said Thomas J. Wilson, chairman, president and chief executive officer of The Allstate Corporation. 


Looking Ahead:

Analysts appear increasingly optimistic about the company's results for the next quarter. The average estimate for the fourth quarter has moved up from $1.08 a share to $1.10 over the last 90 days. When analyst increase earnings estimates investors can assume business has been stronger than first thought and is an encouraging sign for investors. The average estimate for the fiscal year is $4.53 per share, a rise from $4.05 90 days ago.


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Tickers in this Article: ALL

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