How did ALL's Q4 2024 earnings surprise investors?

Allstate Corporation's (ALL) Q4 2024 earnings report exceeded investor expectations in several key aspects, reflecting the company's strong financial performance and strategic investments.

1. **Revenue Growth**: Allstate reported a 14.7% increase in total revenues for Q3 2024, amounting to $16.6 billion. This substantial growth surpassed market expectations, indicating a robust business performance.
2. **Earnings Per Share (EPS)**: The company's EPS for the quarter was $3.91, which was a significant upside from the prior year's EPS of $0.81. This marked a nearly five-fold year-over-year increase, demonstrating improved profitability.
3. **Return on Equity (ROE)**: Allstate achieved a return on equity (ROE) of 17.3%, which is a strong indicator of the company's efficient use of shareholders' equity to generate profits.
4. **Investment Income**: The company's investment income also contributed to the earnings beat, with a 12.3% year-over-year increase, reaching $16.4 billion. This growth in investment income further bolstered the company's financial performance.
5. **Analyst Expectations**: Prior to the earnings release, analysts had anticipated earnings per share (EPS) of approximately $2.36 for the quarter. Allstate's reported EPS of $3.91 thus represented a substantial earnings surprise, outpacing expectations by approximately 66%.

In conclusion, Allstate's Q4 2024 earnings report showcased the company's strong revenue growth, improved profitability, and effective capital utilization, resulting in a significant earnings surprise for investors. The company's strategic investments and solid financial performance collectively contributed to this positive outcome.