Earnings Preview: Allstate

Jan.28.09 | About: Allstate Corporation (ALL)

Allstate Corp. (NYSE:ALL) is expected to report Q4 earnings after the market close on Wednesday, January 28 with a conference call scheduled for Thursday, January 29 at 9:00 am ET.


Analysts are looking for EPS of $1.35 on revenue of $8.46B. The consensus range for EPS is $1.14 to $1.58, while the consensus range for revenue is $8.34B to $8.58B, according to First Call.

Analyst Views

The consensus EPS for the insurer is higher than its 4Q07 EPS of $1.24. Allstate investors may be encouraged by the Q4 results of Travelers Cos. (NYSE:TRV) which reported higher than expected EPS.

On the other hand, Bernstein recently downgraded Allstate to Market Perform from Outperform because the firm believes commercial line companies are less willing to embrace a pricing cycle. In addition, Sandler O'Neill last month dropped the insurer to Hold from Buy.

Last month, Allstate named new CEOs of its financial and investments units. Investors will want to know if these units have changed their strategies or approaches as a result.