Radian Q2 revenue beats expectations
Overview
Radian Q2 revenue of $318 mln beats analyst expectations, per LSEG data
Net income for Q2 at $142 mln, diluted EPS $1.02
Primary mortgage insurance in force hits record $276.7 bln
Repurchased $223 million of shares during the second quarter and paid $35 million of dividends
Outlook
Company highlights favorable credit trends as key driver for future earnings
Result Drivers
MORTGAGE INSURANCE GROWTH - Primary mortgage insurance in force reached a record high of $276.7 bln, contributing to future earnings potential
DEFAULT RATE DECLINE - Default rate decreased from the prior quarter, driven by favorable credit trends
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $318 mln | $238.90 mln (3 Analysts) |
Q2 EPS |
| $1.02 |
|
Q2 Net Income |
| $142 mln |
|
Q2 Adjusted Operating Income |
| $173 mln |
|
Q2 Adjusted ROE |
| 12.4% |
|
Q2 Pretax Profit |
| $175 mln |
|
Q2 ROE |
| 12.5% |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the property & casualty insurance peer group is "buy."
Wall Street's median 12-month price target for Radian Group Inc is $37.50, about 9.5% above its July 29 closing price of $33.94
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago
Press Release: ID:nBw6D0t6ha
