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Allstate Acquires Kingfisher, Enhances Mobile Industry Offerings

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The Allstate Corporation’s (ALL - Free Report) Allstate Protection Plans, a division of ALL, recently announced the acquisition of Kingfisher. The acquiree is a pioneering company in optimizing the lifecycle of smart devices. This strategic move bolsters Allstate’s position in the mobile industry as Kingfisher’s expertise in repair, trade-in, and upgrade solutions aligns well with Allstate’s mission of delivering innovative, consumer-friendly protection plans.

This move bodes well for ALL as this acquisition is expected to enhance Allstate’s ability to serve mobile carriers, manufacturers, and retailers globally. Kingfisher, founded in 2016, has made waves in the mobile circular economy, providing sustainable solutions that address growing consumer demand for flexible device ownership and protection. This acquisition will also help meet the mobile industry’s increasing focus on environmental responsibility by facilitating the circulation of new and second-life devices.

With major partnerships already established with global carriers such as Telenor, Softbank, Three, and T-Mobile, Allstate’s enhanced offering through Kingfisher gives it an even stronger presence in the mobile industry. Enhanced offerings will enable it to expand its footprint and attract new customers, eventually leading to an improved top line in the future. This acquisition will lead to improved results from the Protection Services segment, whose revenues improved 12.7% year over year in the second quarter of 2024. Strength in Allstate Protection Plans bodes well for the company.

With the backing of Allstate’s global resources, Kingfisher’s solutions are poised to reach billions of users, offering both environmental and economic benefits. Allstate’s acquisition of Kingfisher is a forward-looking investment that aligns with market trends and is expected to drive growth for ALL.

Price Performance

Allstate shares have gained 16% in the past six months compared with the industry’s 14.9% rise.

Zacks Investment Research
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ALL’s Zacks Rank & Key Picks

ALL currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Finance space are Community Financial System, Inc. (CBU - Free Report) , WisdomTree, Inc. (WT - Free Report) and American Express Company (AXP - Free Report) . While Community Financial and WisdomTree sport a Zacks Rank #1 (Strong Buy), American Express carries a Zacks Rank #2 (Buy) at present.You can see the complete list of today’s Zacks #1 Rank stocks here.

Community Financial’s earnings surpassed estimates in two of the trailing four quarters and missed the mark twice, the average surprise being 0.83%. The Zacks Consensus Estimate for CBU’s 2024 earnings indicates an improvement of 1.8% while the consensus estimate for revenues implies growth of 12.8% from the corresponding year-ago figures. The consensus mark for CBU’s 2024 earnings has moved 2.4% north in the past 30 days.

The Zacks Consensus Estimate for WisdomTree’s 2024 earnings indicates 51.4% year-over-year growth. In the past two months, WT has witnessed one upward estimate revision against none in the opposite direction. It met earnings estimates twice in the past four quarters and beat twice, with an average surprise of 5.9%.

The bottom line of American Express beat estimates in three of the trailing four quarters and missed the mark once, the average surprise being 7.72%. The Zacks Consensus Estimate for AXP’s 2024 earnings indicates an improvement of 17.2% while the consensus estimate for revenues implies growth of 9% from the corresponding year-ago figures. The consensus mark for AXP’s 2024 earnings has moved 0.5% north in the past 30 days.


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