Allstate Q2 revenue, adjusted EPS beat estimates on insurance growth
ALL•Overview
- U.S. insurance provider's Q2 revenue rose 12%, beating analyst expectations
- Adjusted EPS for Q2 beat consensus, rising 51% year-over-year
- Company increased share repurchases to $1.0 bln in the quarter
Result Drivers
- Policy growth - Co said revenue growth was driven by increased policies in force, especially in auto and homeowners insurance
- Higher premiums - Co attributed premium growth to higher average homeowners insurance prices and rate increases
- Strong investment income - Co said net investment income rose $255 mln year-over-year, helped by higher fixed income yields and performance-based assets
Analyst coverage
- The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 14 "hold" and 1 "sell" or "strong sell"
- The average consensus recommendation for the property & casualty insurance peer group is "hold"
- Wall Street's median 12-month price target for Allstate Corp is $250.00, about 4.8% below its August 4 closing price of $262.56
- The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago
