Allstate Corporation Gears Up for Fourth-Quarter Earnings Call
Northbrook, Illinois-based The Allstate Corporation (ALL) provides property and casualty, and other insurance products in the United States and Canada. With a market cap of $47.9 billion, Allstate operates through Allstate Protection, Protection Services, Health and Benefits, Run-off Property-Liability, and Corporate and Other segments.
Analysts Anticipate Earnings Boost in Upcoming Report
The insurance giant is set to announce its fourth-quarter earnings after the market closes on Wednesday, Feb. 5. Analysts expect ALL to report a non-GAAP profit of $5.89 per share, marking a 1.2% increase from $5.82 per share reported in the same quarter last year. Notably, Allstate has exceeded Wall Street’s expectations in each of the past four quarters, with its adjusted EPS of $3.91 from the last reported quarter surpassing predictions by an impressive 77.7%.
Future Earnings Forecast Looks Promising
Looking ahead to fiscal 2024, analysts anticipate Allstate will achieve an adjusted EPS of $16.45, a significant rise from $0.95 in fiscal 2023. Projections for fiscal 2025 indicate a 16.5% year-over-year growth, reaching $19.16 per share.
Stock Performance vs. Market Indices
Over the past 52 weeks, ALL stock has increased by 20.9%, lagging behind the S&P 500 Index’s ($SPX) growth of 22% and the Financial Select Sector SPDR Fund’s (XLF) returns of 26.8%.
Challenges and Continued Growth Initiatives
Allstate has been concentrating on both short-term results and long-term growth plans. One of these initiatives is the auto insurance profit improvement plan, which yielded $486 million in underwriting income for auto insurance in the last quarter. However, after releasing Q3 earnings on Oct. 30, ALL stock took a 1.5% dip due to a notable 44.2% increase in catastrophe losses compared to the previous year, totaling $1.7 billion, largely influenced by hurricanes Beryl, Debby, Francine, and Helene. Despite this, Allstate reported a significant 14.7% year-over-year growth in consolidated revenues, reaching $16.6 billion, and a net income of $1.2 billion, a stark contrast to the $41 million net loss from the same quarter last year.
Analyst Ratings Indicate Strong Market Confidence
Currently, the consensus opinion on ALL stock is strongly bullish, with an overall “Strong Buy” rating. Among the 20 analysts covering the stock, 16 recommend “Strong Buy,” one suggests “Moderate Buy,” another advises “Hold,” and two advocate a “Strong Sell” rating. The mean price target of $226.11 suggests a potential upside of 23.9% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart
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