Allstate Beats on EPS But GAAP Results Lag

Allstate (NYSE: ALL  ) reported earnings on Feb. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Allstate met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share dropped significantly. The non-GAAP profit was a surprise, as analysts had predicted a loss.

Margins dropped across the board.

Revenue details
Allstate logged revenue of $6.74 billion. The 14 analysts polled by S&P Capital IQ expected to see net sales of $6.74 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.59. The 24 earnings estimates compiled by S&P Capital IQ predicted -$0.04 per share. GAAP EPS of $0.81 for Q4 were 43% lower than the prior-year quarter's $1.43 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 20.3%, 590 basis points worse than the prior-year quarter. Operating margin was 7.5%, 650 basis points worse than the prior-year quarter. Net margin was 4.6%, 420 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $6.77 billion. On the bottom line, the average EPS estimate is $1.22.

Next year's average estimate for revenue is $27.26 billion. The average EPS estimate is $4.56.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Allstate is outperform, with an average price target of $44.44.

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