What You Need to Know Ahead of Allstate’s Earnings Release

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.

The insurance giant is set to announce its fourth-quarter earnings after the market closes on Wednesday, Feb. 5. Ahead of the event, analysts expect ALL to report a non-GAAP profit of $5.89 per share, up 1.2% from $5.82 per share reported in the year-ago quarter. Furthermore, Allstate has surpassed Wall Street’s bottom-line projections in each of the past four quarters. Its adjusted EPS of $3.91 for the last reported quarter surpassed analysts’ estimates by a staggering 77.7%.

For the full fiscal 2024, analysts expect Allstate to deliver an adjusted EPS of $16.45, significantly up from $0.95 in fiscal 2023. While in fiscal 2025, its earnings are expected to grow 16.5% year-over-year to $19.16 per share.

ALL stock prices have gained 20.9% over the past 52 weeks, lagging behind the S&P 500 Index’s ($SPX) 22% surge and the Financial Select Sector SPDR Fund’s (XLF) 26.8% returns during the same time frame.

Allstate has continued to focus on near-term performance while implementing its long-term growth plans which has resulted in strong financial performance in the past quarters. The auto insurance profit improvement plan is one such plan which has resulted in $486 million auto insurance underwriting income during the last quarter.

However, ALL stock dipped 1.5% in the trading session after the release of its Q3 earnings on Oct. 30 as the company’s catastrophe losses increased by a concerning 44.2% compared to the year-ago quarter to $1.7 billion, primarily due to the impact of hurricanes Beryl, Debby, Francine and Helene. Nevertheless, Allstate’s overall performance has remained more than impressive. The company reported a staggering 14.7% year-over-year growth in consolidated revenues to $16.6 billion. Meanwhile, it delivered a net income of $1.2 billion, substantially up from the $41 million net loss reported in the year-ago quarter.

Furthermore, the consensus opinion on ALL stock is strongly bullish, with an overall “Strong Buy” rating. Out of the 20 analysts covering the stock 16 recommend “Strong Buy,” one advises “Moderate Buy,” one suggests “Hold,” and two advocate a “Strong Sell” rating. Its mean price target of $226.11 indicates a 23.9% upside potential 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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