Allstate (ALL) Stock Gains After Earnings Beat

Allstate (ALL) shares are gaining after the company beat analysts' estimates for earnings in the third quarter.
By Lindsay Ingram ,

NEW YORK (TheStreet) -- Shares of Allstate (ALL) - Get Report were gaining 2.2% to $63.17 with heavy trading volume on Tuesday after the insurance company beat analysts' estimates for earnings in the third quarter.

On Monday, Allstate reported earnings of $1.52 a share for the third quarter, above analysts' estimates of $1.31 a share for the quarter. Revenue grew by 4.8% year over year to $7.65 billion for the quarter, compared to analysts' estimates of $7.63 billion.

The insurance company said total property-liability net written premiums grew by 4.2% to $8.1 billion in the third quarter. The increase was driven by a 4.7% increase in Allstate brand premiums.

"The homeowners business continued to generate excellent results due to the repositioning of the business several years ago and low catastrophe losses in the third quarter of 2015," Chairman and CEO Thomas J. Wilson said in a statement. "Price increases approved for auto insurance for the first nine months of the year were double the average for the same periods of 2013 and 2014 as we work to lower the auto combined ratio."

About 5.6 million shares of Allstate were traded by 3:45 p.m. Tuesday, above the company's average trading volume of about 3.3 million shares a day.

TheStreet Ratings team rates ALLSTATE CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate ALLSTATE CORP (ALL) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

You can view the full analysis from the report here: ALL

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