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Can Allstate Beat Q1 Earnings Estimates on Net Investment Income?
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Key Takeaways
Allstate is set to report Q1 2026 with EPS seen at $7.43, up 110.5% year over year.
ALL expects Property-Liability underwriting income to jump 96.5% with improved combined ratios.
Allstate faces margin pressure as operating costs rise 9% and interest expenses increase.
The Allstate Corporation (ALL - Free Report) is set to report its first-quarter 2026 results on April 29, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $7.43 per share on revenues of $17.7 billion.
The first-quarter earnings estimate witnessed six upward revisions against one downward movement over the past 60 days. The bottom-line projection indicates a year-over-year jump of 110.5%. Also, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year increase of 5.4%.
Image Source: Zacks Investment Research
For 2026, the Zacks Consensus Estimate for Allstate’s revenues is pegged at $72.8 billion, implying a rise of 7.3% year over year. However, the consensus mark for 2026 EPS is pegged at $25.95, implying a year-over-year decrease of 25.5%.
Allstate has a robust history of surpassing earnings estimates, beating the consensus estimate in each of the last four quarters, with the average surprise being 54.3%. This is depicted in the figure below.
The Allstate Corporation Price, Consensus and EPS Surprise
Our proven model predicts a likely earnings beat for the company this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.
ALL currently has an Earnings ESP of +0.04% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
What’s Shaping Allstate’s Q1 Results?
The Zacks Consensus Estimate and our model estimate for net premiums earned indicate 7.6% and 8% year-over-year growth, respectively. Net investment income is expected to have received an impetus from higher-yielding fixed-income securities. The Zacks Consensus Estimate for net investment income indicates 4.8% year-over-year growth from $854 million.
The consensus mark for underwriting income from Property-Liability indicates a 96.5% year-over-year increase. The combined ratio for Property-Liability is pegged at 88.6%, improving from 97.4% a year ago. This means a bigger portion of premiums remained with the company following claim payments.
The consensus mark for underwriting income from the Auto brand is pegged at $923.4 million compared with $816 million a year ago. The combined ratio in this line of business is pegged at 90.6%, improving from 91.3% in the year-ago quarter. The combined ratio for Homeowners Insurance is pegged at 82.6%, improving from 112.3% a year ago. The consensus mark forHomeowners’ policies in force indicates a 2.5% year-over-year increase.
The factors stated above are expected to have positioned the company for not only year-over-year growth but also an earnings beat.
However, Allstate’s margins are likely to have suffered a blow due to elevated operating costs and expenses. We expect the above-mentioned cost to increase 9% year over year to $2.4 billion. We expect interest expenses to increase 4.4% year over year in the first quarter.
Other Stocks That Warrant a Look
Here are some other companies worth considering from the broader Finance space, as our model shows that these, too, have the right combination of elements to beat on earnings this time around:
The Zacks Consensus Estimate for Cboe Global Markets’ bottom line for the to-be-reported quarter is pegged at $3.21 per share, indicating 28.4% year-over-year growth. It beat earnings estimates in each of the past four quarters, with the average surprise being 4.4%. The consensus estimate for Cboe Global Markets’ revenues is pegged at $679 million.
Marex Group plc (MRX - Free Report) currently has an Earnings ESP of +7.42% and a Zacks Rank #1.
The Zacks Consensus Estimate for Marex Group’s bottom line for the to-be-reported quarter is pegged at $1.30 per share, indicating 42.9% year-over-year growth. It has remained stable over the past week. The consensus estimate for Marex Group’s revenues is pegged at $687 million.
Axis Capital Holdings Limited (AXS - Free Report) has an Earnings ESP of +1.34% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Axis Capital Holdings’ earnings for the to-be-reported quarter is pegged at $3.23 per share, indicating 1.9% year-over-year growth. The consensus estimate for revenues is pegged at $1.7 billion. Axis Capital Holdings beat earnings estimates in each of the past four quarters, with the average surprise being 15.8%.
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Can Allstate Beat Q1 Earnings Estimates on Net Investment Income?
Key Takeaways
The Allstate Corporation (ALL - Free Report) is set to report its first-quarter 2026 results on April 29, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $7.43 per share on revenues of $17.7 billion.
The first-quarter earnings estimate witnessed six upward revisions against one downward movement over the past 60 days. The bottom-line projection indicates a year-over-year jump of 110.5%. Also, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year increase of 5.4%.
Image Source: Zacks Investment Research
For 2026, the Zacks Consensus Estimate for Allstate’s revenues is pegged at $72.8 billion, implying a rise of 7.3% year over year. However, the consensus mark for 2026 EPS is pegged at $25.95, implying a year-over-year decrease of 25.5%.
Allstate has a robust history of surpassing earnings estimates, beating the consensus estimate in each of the last four quarters, with the average surprise being 54.3%. This is depicted in the figure below.
The Allstate Corporation Price, Consensus and EPS Surprise
The Allstate Corporation price-consensus-eps-surprise-chart | The Allstate Corporation Quote
Q1 Earnings Whispers for Allstate
Our proven model predicts a likely earnings beat for the company this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.
ALL currently has an Earnings ESP of +0.04% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
What’s Shaping Allstate’s Q1 Results?
The Zacks Consensus Estimate and our model estimate for net premiums earned indicate 7.6% and 8% year-over-year growth, respectively. Net investment income is expected to have received an impetus from higher-yielding fixed-income securities. The Zacks Consensus Estimate for net investment income indicates 4.8% year-over-year growth from $854 million.
The consensus mark for underwriting income from Property-Liability indicates a 96.5% year-over-year increase. The combined ratio for Property-Liability is pegged at 88.6%, improving from 97.4% a year ago. This means a bigger portion of premiums remained with the company following claim payments.
The consensus mark for underwriting income from the Auto brand is pegged at $923.4 million compared with $816 million a year ago. The combined ratio in this line of business is pegged at 90.6%, improving from 91.3% in the year-ago quarter. The combined ratio for Homeowners Insurance is pegged at 82.6%, improving from 112.3% a year ago. The consensus mark for Homeowners’ policies in force indicates a 2.5% year-over-year increase.
The factors stated above are expected to have positioned the company for not only year-over-year growth but also an earnings beat.
However, Allstate’s margins are likely to have suffered a blow due to elevated operating costs and expenses. We expect the above-mentioned cost to increase 9% year over year to $2.4 billion. We expect interest expenses to increase 4.4% year over year in the first quarter.
Other Stocks That Warrant a Look
Here are some other companies worth considering from the broader Finance space, as our model shows that these, too, have the right combination of elements to beat on earnings this time around:
Cboe Global Markets, Inc. (CBOE - Free Report) has an Earnings ESP of +5.37% and a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Cboe Global Markets’ bottom line for the to-be-reported quarter is pegged at $3.21 per share, indicating 28.4% year-over-year growth. It beat earnings estimates in each of the past four quarters, with the average surprise being 4.4%. The consensus estimate for Cboe Global Markets’ revenues is pegged at $679 million.
Marex Group plc (MRX - Free Report) currently has an Earnings ESP of +7.42% and a Zacks Rank #1.
The Zacks Consensus Estimate for Marex Group’s bottom line for the to-be-reported quarter is pegged at $1.30 per share, indicating 42.9% year-over-year growth. It has remained stable over the past week. The consensus estimate for Marex Group’s revenues is pegged at $687 million.
Axis Capital Holdings Limited (AXS - Free Report) has an Earnings ESP of +1.34% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Axis Capital Holdings’ earnings for the to-be-reported quarter is pegged at $3.23 per share, indicating 1.9% year-over-year growth. The consensus estimate for revenues is pegged at $1.7 billion. Axis Capital Holdings beat earnings estimates in each of the past four quarters, with the average surprise being 15.8%.