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Allstate to Report Q2 Earnings: Can Auto Brand Strength Save the Day?
ZACKSยท 2025-07-29 17:50
Core Insights - The Allstate Corporation is scheduled to report its Q2 2025 results on July 30, 2025, with earnings estimated at $3.36 per share and revenues at $17.16 billion [1] - The earnings estimate reflects a significant year-over-year increase of 108.7%, while revenue is projected to rise by 8.5% year-over-year [2] - For the full year 2025, Allstate's revenue is expected to reach $69.06 billion, indicating a 7.4% increase, with EPS projected at $18.33, showing a slight year-over-year increase [3] Earnings Projections - The second-quarter earnings estimate has seen four upward revisions and one downward revision in the past 60 days [2] - Allstate has a strong track record of exceeding earnings estimates, achieving an average surprise of 134.9% over the last four quarters [3] Earnings Whispers - The company is projected to report Q2 EPS of $3.36 and revenue of $17.16 billion, both showing strong year-over-year growth [7] - Auto underwriting income is expected to increase to $484.7 million, with an improved combined ratio of 94.99% [7][10] - Net investment income is anticipated to grow by 14.5% year-over-year, benefiting from higher-yielding fixed-income securities [8] Business Segment Performance - The adjusted net income from the Protection Services business is expected to grow by 14.7% year-over-year [9] - Homeowners' policies in force are projected to increase by 2.5% year-over-year [9] - The underwriting loss from Commercial Lines is estimated at $11.5 million, a significant improvement from $138 million a year ago [11] Cost and Expense Outlook - Total costs and expenses are projected to rise by more than 6% year-over-year due to increased operating costs and claims expenses, which may offset some positive gains [11] Peer Performance Comparison - Marsh & McLennan reported adjusted EPS of $2.72, exceeding estimates by 2.3%, driven by strong growth in Risk and Insurance Services [12] - AON's adjusted earnings of $3.49 per share surpassed estimates by 2.7%, benefiting from new business growth and solid retention rates [13] - AMERISAFE reported adjusted EPS of 53 cents, missing estimates by 3.6%, impacted by a decline in net investment income and elevated expenses [14]