NEW YORK (TheStreet) -- Allstate (ALL) - Get Report stock closed lower by 1.45% to $61.88 on Friday, before the release of the company's 2015 third quarter financial results, due out after the market close on Monday.
Analysts are expecting the insurance company to post a year over year decline in both earnings per share and revenue for the most recent quarter.
Allstate has been forecast to report earnings of $1.31 per share on revenue of $8.14 billion by analysts surveyed by Thomson Reuters.
Last year, the company reported earnings of $1.39 per share on revenue of $8.94 billion in the 2014 third quarter.
Separately, 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, reasonable valuation levels and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 13.3%. Since the same quarter one year prior, revenues slightly increased by 2.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Although ALL's debt-to-equity ratio of 0.24 is very low, it is currently higher than that of the industry average.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Insurance industry and the overall market on the basis of return on equity, ALLSTATE CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- ALLSTATE CORP's earnings per share declined by 43.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ALLSTATE CORP increased its bottom line by earning $6.29 versus $4.81 in the prior year. For the next year, the market is expecting a contraction of 22.5% in earnings ($4.87 versus $6.29).
- You can view the full analysis from the report here: ALL