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Essent Group Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call
Benzinga· 2025-02-14 07:52
Core Viewpoint - Essent Group Ltd. is set to release its fourth-quarter financial results on February 14, 2025, with expectations of a slight increase in earnings per share and revenue compared to the previous year [1]. Financial Performance - Analysts predict quarterly earnings of $1.65 per share, an increase from $1.64 per share in the same quarter last year [1]. - Projected quarterly revenue is $313.88 million, up from $297.28 million a year earlier [1]. - The company reported worse-than-expected third-quarter EPS and revenues on November 1, 2024 [1]. Stock Performance - Essent Group shares increased by 1.4%, closing at $57.91 [2]. Analyst Ratings - Keefe, Bruyette & Woods analyst Bose George maintains an Outperform rating, lowering the price target from $75 to $72 [3]. - JP Morgan analyst Richard Shane holds a Neutral rating, reducing the price target from $67 to $60 [3]. - Goldman Sachs analyst Ryan Nash also maintains a Neutral rating, cutting the price target from $68 to $60 [3]. - RBC Capital analyst Scott Heleniak keeps an Outperform rating, decreasing the price target from $73 to $67 [3]. - BTIG analyst Mark Palmer maintains a Buy rating, raising the price target from $61 to $64 [3].
Essent .(ESNT) - 2024 Q3 - Quarterly Report
2024-11-04 22:44
Financial Performance - Net premiums written for Q3 2024 were $242.965 million, a slight increase from $240.574 million in Q3 2023, representing a growth of 1.8%[12] - Net premiums earned for the nine months ended September 30, 2024, reached $746.417 million, compared to $671.292 million for the same period in 2023, indicating a year-over-year increase of 11.2%[12] - Total revenues for Q3 2024 were $316.578 million, up from $296.108 million in Q3 2023, marking a rise of 6.5%[12] - Net income for Q3 2024 was $176.175 million, slightly down from $177.959 million in Q3 2023, a decrease of 1.0%[12] - Basic earnings per share for Q3 2024 were $1.67, compared to $1.68 in Q3 2023, showing a marginal decline of 0.6%[12] - Comprehensive income for the nine months ended September 30, 2024, was $651.720 million, up from $467.426 million in the same period of 2023, indicating a significant increase of 39.2%[12] - Net income for the nine months ended September 30, 2024, was $561,503, compared to $521,019 for the same period in 2023, representing an increase of approximately 7.7%[16] Investment Income - Net investment income increased to $57.340 million in Q3 2024 from $47.072 million in Q3 2023, reflecting a growth of 21.5%[12] - Total net investment income for the nine months ended September 30, 2024, was $165.5 million, an increase of 22.1% compared to $135.6 million for the same period in 2023[41] Assets and Liabilities - Total liabilities increased to $1.485 billion in 2024 from $1.324 billion in 2023, representing a growth of 12.1%[11] - Total assets rose to $7.127 billion in 2024, compared to $6.427 billion in 2023, reflecting an increase of 10.9%[11] - Total stockholders' equity increased to $5,640,985 as of September 30, 2024, from $4,808,007 at the end of September 2023, reflecting a growth of about 17.3%[13] Cash Flow and Dividends - Net cash provided by operating activities for the nine months ended September 30, 2024, was $634,827, up from $547,548 in the prior year, indicating a growth of about 15.9%[16] - The company declared dividends totaling $89,982 for the nine months ended September 30, 2024, compared to $81,056 for the same period in 2023, marking an increase of approximately 10.5%[13] Reinsurance and Risk Management - The total risk in force (RIF) ceded under quota share reinsurance agreements was $8.6 billion as of September 30, 2024[45] - The total remaining reinsurance in force for XOL transactions is $146.6 billion, with remaining risk in force at $40.1 billion[50] - The company has entered into reinsurance agreements that provide excess of loss reinsurance coverage for new defaults on mortgage insurance policies, enhancing risk management[205] Regulatory and Compliance - The effective tax rate reconciliation and income taxes paid will be required to be disclosed starting from annual periods after December 15, 2024, as per ASU 2023-09[27] - The company is currently evaluating the impact of ASU 2023-07 on its consolidated financial statements, which will require enhanced segment reporting disclosures effective for fiscal years beginning after December 15, 2023[26] - Compliance with PMIERs 2.0 was confirmed as of September 30, 2024, ensuring the company meets the financial strength requirements for mortgage insurance[105] Employee and Operational Metrics - The company has a highly experienced team with 602 employees as of September 30, 2024, supporting its operations in the housing finance industry[123] - Compensation and benefits accounted for 59% of other underwriting and operating expenses for the three months ended September 30, 2024, compared to 57% in the same period of 2023[149] Market Conditions and Future Outlook - The Federal Reserve reduced the target federal funds rate by 50 basis points in September 2024, which may impact the company's estimates of losses[55] - The company expects incurred losses and claims to increase as a greater amount of its insurance portfolio reaches the anticipated period of highest claim frequency[146] - Approximately 12.5% of Essent's total insurance in force is in counties affected by hurricanes Helene and Milton, with potential for increased defaults beginning in Q4 2024[126] Acquisitions and Growth - The acquisition of Agents National Title and Boston National Title was completed for $92.6 million, contributing $59.4 million in revenues and incurring pre-tax net losses of $11.8 million for the nine months ended September 30, 2024[111] - Essent Group's new insurance written (NIW) for Q3 2024 was approximately $12.5 billion, consistent with Q3 2023, while NIW for the nine months ended September 30, 2024, was $33.3 billion, down from $38.9 billion in the same period of 2023[121]
Essent .(ESNT) - 2024 Q3 - Earnings Call Transcript
2024-11-01 23:34
Financial Data and Key Metrics Changes - For Q3 2024, the company reported net income of $176 million, a slight decrease from $178 million a year ago, with diluted earnings per share at $1.65 compared to $1.66 last year [7][12] - The annualized return on average equity was 13% for the third quarter [7] - Cash and investments as of September 30th were $6.4 billion, with a new money yield of nearly 5% [10] - The annualized yield for investments available for sale increased to 3.8%, up from 3.6% a year ago [10] Business Line Data and Key Metrics Changes - The US mortgage insurance in force was $243 billion, reflecting a 2% increase from a year ago [7][12] - Net premiums earned for the third quarter were $249 million, including $17.1 million from Essent RE and $17.7 million from title operations [13] - The base average premium rate for the US mortgage insurance portfolio remained at 41 basis points, while the net average premium rate decreased by 1 basis point to 35 basis points [13] Market Data and Key Metrics Changes - The default rate on the US mortgage insurance portfolio was 1.95%, an increase of 24 basis points from the previous quarter [15] - The weighted average FICO score of the insurance in force was 746, with a weighted average original LTV of 93% [7] Company Strategy and Development Direction - The company remains committed to a programmatic reinsurance strategy to diversify capital resources and manage credit risk [9] - The long-term outlook for housing is positive, supported by supply-demand imbalances and favorable demographic trends [6] - The company aims to maintain a conservative balance sheet while optimizing shareholder returns and preserving options for strategic growth opportunities [10][21] Management's Comments on Operating Environment and Future Outlook - Management noted that while higher mortgage rates have reduced overall mortgage originations, the company is less reliant on transaction activity due to its portfolio business model [5] - The company anticipates some noise in the fourth quarter due to the impact of recent hurricanes but expects the ultimate P&L impact to be muted due to policy exclusions for claims related to property damage [8][40] Other Important Information - The company paid a dividend of $58 million to its US holding company during the quarter and repurchased 170,000 shares for $9.6 million [20] - The PMIER sufficiency ratio was strong at 186%, with $1.7 billion in excess available assets [18] Q&A Session Summary Question: Was there any quantifiable impact on the default rate or new notices this quarter from hurricanes? - Management indicated there was a minimal impact, primarily from Hurricane Beryl, and expects to see more noise in the fourth quarter [23] Question: Are we starting to see the effects of vintage seasoning from larger post-COVID vintages materialize more? - Management confirmed that the portfolio is seasoning, with the average age now at 32 months, and noted the influence of forbearance on defaults [24] Question: Did you make any changes in the claim rate assumptions in the quarter? - No real changes were made in the claim rate assumptions for the quarter [26] Question: Are the loan sizes getting bigger, impacting the provision for new notices? - Yes, the average loan size for the insurance in force is now around $290,000, up from $226,000 historically [30] Question: Will you provision for the impact of storms in Q4? - Management has not yet decided on provisioning for the storms and will assess the situation as defaults come in [31] Question: Can you help us think about the timeline around the forbearance process and its impact? - Management explained that the COVID forbearance process ended last November, and they expect less friction in the process moving forward, leading to more normalization in defaults and cures [44]
Essent .(ESNT) - 2024 Q3 - Earnings Call Presentation
2024-11-01 22:40
ESSENT GROUP LTD. | NYSE: ESNT © 2024 Essent Group Ltd. All rights reserved. | essentgroup.com | 1 ESSENT GROUP LTD. INVESTOR PRESENTATION 3Q24 NYSE: ESNT November 1, 2024 Disclaimer This presentation may include "forward-looking statements" which are subject to known and unknown risks and uncertainties, many of which may be beyond our control. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "should," "expect," "plan," "anticipate," "be ...
Essent Group (ESNT) Lags Q3 Earnings Estimates
ZACKS· 2024-11-01 12:46
分组1 - Essent Group reported quarterly earnings of $1.65 per share, missing the Zacks Consensus Estimate of $1.70 per share, representing an earnings surprise of -2.94% [1] - The company posted revenues of $316.58 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.09%, compared to year-ago revenues of $296.11 million [2] - Over the last four quarters, Essent Group has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] 分组2 - The stock has added about 13.8% since the beginning of the year, underperforming the S&P 500's gain of 19.6% [3] - The current consensus EPS estimate for the coming quarter is $1.74 on revenues of $317.51 million, and for the current fiscal year, it is $7.02 on revenues of $1.24 billion [7] - The Zacks Industry Rank for Financial - Mortgage & Related Services is currently in the top 7% of over 250 Zacks industries, indicating strong industry performance [8]
Is Essent Group (ESNT) Stock Undervalued Right Now?
ZACKS· 2024-10-18 14:45
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks. Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe ar ...
What Makes Essent Group (ESNT) a New Buy Stock
ZACKS· 2024-10-09 17:05
Essent Group (ESNT) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. Since a cha ...
Should Value Investors Buy Essent Group (ESNT) Stock?
ZACKS· 2024-10-02 14:46
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks. Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental ...
Insuring Growth: Essent Group's Q2 Earnings Paint A Bright Picture
Seeking Alpha· 2024-08-29 15:28
F 1 1 II guvendemir Thesis Essent Group Ltd. (NYSE:ESNT) recently dropped its Q2 2024 results, and they look solid: they reported GAAP earnings per share (EPS) of $1.91, which beat estimates by $0.22, and revenue came in at $312.94 million, exceeding projections by $4.61 million. In my analysis, I argue that despite headwinds, Essent Group's smart risk management and strong dividend policy make them a solid play in the mortgage insurance space. About Essent Group Ltd. is a Bermuda-based holding company in h ...
Essent .(ESNT) - 2024 Q2 - Earnings Call Presentation
2024-08-02 18:40
ESSENT GROUP LTD. | NYSE: ESNT © 2024 Essent Group Ltd. All rights reserved. | essentgroup.com | 1 ESSENT GROUP LTD. INVESTOR PRESENTATION 2Q24 NYSE: ESNT August 2, 2024 Disclaimer This presentation may include "forward-looking statements" which are subject to known and unknown risks and uncertainties, many of which may be beyond our control. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "should," "expect," "plan," "anticipate," "beli ...