Core Viewpoint - Radian (RDN) reported quarterly earnings of $1.09 per share, exceeding the Zacks Consensus Estimate of $0.95 per share, and showing an increase from $0.96 per share a year ago, indicating a positive earnings surprise of 14.74% [1] Company Performance - Over the last four quarters, Radian has consistently surpassed consensus EPS estimates, achieving this four times [2] - The company reported revenues of $312.37 million for the quarter ended December 2024, which fell short of the Zacks Consensus Estimate by 3.89%, but showed an increase from $302.78 million year-over-year [2] - Radian's stock has increased approximately 7% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [3] Future Outlook - The future performance of Radian's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - Current consensus EPS estimate for the upcoming quarter is $0.93 on revenues of $327.2 million, and for the current fiscal year, it is $3.67 on revenues of $1.32 billion [7] - The estimate revisions trend for Radian is currently mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Insurance - Multi line industry, to which Radian belongs, is currently ranked in the bottom 45% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Radian's performance [5]

Core Viewpoint - Radian Group Inc. is experiencing a short-term bearish trend as its share price trades below the 50-day simple moving average, despite a solid long-term growth outlook driven by an improving mortgage insurance portfolio and declining claims [1][2][4]. Group 1: Financial Performance - As of January 17, 2025, Radian Group's share price was $32.94, down 13% from its 52-week high of $37.86 [1]. - The company has a market capitalization of $4.90 billion and has seen its shares gain 12.4% over the past year, underperforming its industry and the S&P 500 composite [2]. - Radian Group's revenues for 2025 are projected to increase by 4.8% compared to 2024 estimates, while earnings have grown by 8.5% over the last five years [4]. - The return on invested capital in the trailing 12 months was 7.8%, significantly higher than the industry average of 2.3%, indicating efficient fund utilization [6]. Group 2: Growth Drivers - Radian Group is focusing on its core business and services with higher growth potential, which is expected to ensure a predictable and recurring fee-based revenue stream [7]. - The company has been witnessing a decline in claim filings, which is anticipated to further strengthen its balance sheet and improve its financial profile [8]. - The mortgage insurance market is expected to grow approximately 10% in 2025 compared to 2024, driven by ongoing homebuyer demand and a projected decline in interest rates [9]. Group 3: Capital Position and Dividends - Radian Group is strengthening its capital position through capital contributions, reinsurance transactions, and maintaining a solid cash position, which supports wealth distribution [10]. - The company increased its quarterly dividend by 9% in the first quarter of 2024, marking the fifth consecutive year of dividend increases, with a total rise of 96% over the past four years [11]. Group 4: Valuation - Radian Group shares are trading at a price-to-book multiple of 1.04, which is lower than the industry average of 2.37, providing a better entry point for investors [12]. - Other multi-line insurers are also trading at a discount to the industry average, indicating a favorable valuation environment [12]. Group 5: Overall Outlook - The combination of an improving mortgage insurance portfolio, declining claims, a solid capital position, effective capital deployment, and favorable growth estimates positions Radian Group well for long-term success [13].

Radian Group Inc. (RDN) shares are trading at a discount to the Zacks Multi-line Insurance industry. Its forward price-to-book value of 1.02X is lower than the industry average of 2.24X, the Finance sector’s 3.56X and the Zacks S&P 500 composite’s 8.6X.Image Source: Zacks Investment ResearchThe insurer has a market capitalization of $4.72 billion. The average volume of shares traded in the last three months was 1.05 million.The stock remains attractively valued compared with CNO Financial Group, Inc. (CNO) ...

Radian Group Inc. (RDN) reported third-quarter 2024 adjusted operating income of $1.03 per share, which beat the Zacks Consensus Estimate by 17%. However, the bottom line decreased 0.9% year over year.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Operating revenues increased 2.6% year over year to $319 million due to higher net investment income. The metric missed the Zacks Consensus Estimate by 0.3%.The results reflected solid performance in the All Other segment, higher primary ...

Financial Performance - The company reported a net income of $450 million for the quarter, representing a 15% increase year-over-year[1]. - Net income for Q3 2024 was $151,892, down 3.9% from $156,582 in Q3 2023[28]. - Net income for the nine months ended September 30, 2024, was $456,149 thousand, a slight decrease from $460,426 thousand in 2023, representing a decline of approximately 0.6%[32]. - Comprehensive income for Q3 2024 was $296,103, significantly higher than $59,186 in Q3 2023[28]. - The company reported a decrease in unearned premiums to $198,007 thousand from $225,396 thousand, a decline of approximately 12.2%[24]. - The company reported a net loss of $4,875 in the All Other category for the three months ended September 30, 2024, an improvement from a loss of $8,774 in 2023[55]. Revenue and Expenses - Total revenues for Q3 2024 reached $333,857, representing a 6.8% increase from $312,513 in Q3 2023[26]. - Total expenses increased by 24.1% to $138,465 in Q3 2024, compared to $111,530 in Q3 2023[26]. - Services revenue increased by 11.7% to $12,167 in Q3 2024, compared to $10,892 in Q3 2023[26]. - Net premiums earned for Q3 2024 were $239,133, a slight decrease of 0.5% from $240,262 in Q3 2023[26]. - Adjusted pretax operating income for the Mortgage Insurance segment was $203,543 for Q3 2024, down from $219,229 in Q3 2023, representing a decline of 7.1%[55]. Assets and Investments - Total assets increased to $8,419,771 thousand as of September 30, 2024, compared to $7,593,933 thousand at December 31, 2023, representing a growth of approximately 10.9%[24]. - Total investments rose to $6,497,180 thousand from $6,085,654 thousand, marking an increase of about 6.8%[24]. - Cash and cash equivalents increased to $28,061 thousand, up from $18,999 thousand, representing a growth of approximately 47.5%[24]. - The carrying value of residential mortgage loans held for sale increased significantly to $530 million as of September 30, 2024, from $33 million at December 31, 2023[82]. - The company reported unrealized holding gains on investments of $144,659 in Q3 2024, compared to losses of $(99,603) in Q3 2023[28]. Market and Strategic Initiatives - The company anticipates a revenue growth of 10% for the next fiscal year, driven by market expansion and new product offerings[1]. - The company plans to expand its market presence in the Southeast region, targeting a 25% increase in market share by 2025[1]. - The company is exploring strategic acquisitions to enhance its service offerings and market reach in the coming year[1]. - Radian Guaranty aims to remain eligible under the PMIERs to insure loans purchased by the GSEs, which is critical for its business operations[17]. - The company is focused on maintaining adequate capital levels to satisfy regulatory requirements and support future growth strategies[17]. Reinsurance and Risk Management - A new quota share reinsurance agreement was established, expected to reduce risk exposure by 30% over the next two years[1]. - The 2024 QSR Agreement has a quota share percentage of 25% and a profit commission of up to 59%[101]. - Radian Guaranty has ceased ceding new insurance written (NIW) under the 2023 QSR Agreement as of July 1, 2024[99]. - The company reported a primary case reserve for losses of $337,025 thousand as of September 30, 2024, down from $344,235 thousand as of December 31, 2023[116]. - The total reserve for losses and LAE decreased to $363,225 thousand as of September 30, 2024, from $370,148 thousand as of December 31, 2023, indicating a reduction of approximately 1.7%[116]. Shareholder and Debt Management - The company repurchased 4.8 million shares at an average price of $31.04 per share during the nine months ended September 30, 2024, with $618 million remaining under the share repurchase program[139]. - The quarterly dividend was increased from $0.225 to $0.245 per share starting in February 2024, with total annual dividends per share declared and paid at $0.735 for 2024[140]. - The company issued $625 million of Senior Notes due 2029 in March 2024, with net proceeds of $617 million[128]. - Senior notes decreased to $1,064,718 thousand from $1,417,781 thousand, a decline of approximately 25%[24]. - Interest expense for the three months ended September 30, 2024, was $29,391 thousand, compared to $23,282 thousand for the same period in 2023, reflecting a year-over-year increase of 26.5%[127].

It has been about a month since the last earnings report for Radian (RDN) . Shares have added about 0.7% in that time frame, underperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Radian due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Radian Group Q2 Earnings Top Estimates, Premiums Rise ...

Shares of Radian Group Inc. (RDN) have rallied 20.8% year to date, outperforming the industry's growth of 12.7%, the Finance sector's rise of 10.4% and the Zacks S&P 500 composite's increase of 16.8%. With a market capitalization of $5.2 billion, the average volume of shares traded in the last three months was 0.9 million. Improving mortgage insurance portfolio, declining claims, a well-performing homegenius segment, a solid capital position and effective capital deployment drive this Zacks Rank #2 (Buy) mo ...

Financial Performance - The company reported a net income of $450 million for the quarter, representing a 15% increase year-over-year[2]. - Net income for the quarter was $151,903, a rise of 4.0% from $146,087 year-over-year[21]. - Net income for the three months ended June 30, 2024, was $151,903 thousand, compared to $146,087 thousand for the same period in 2023, reflecting an increase of 5.0%[40]. - Net income for the six months ended June 30, 2024, was $304.3 million, slightly up from $303.8 million for the same period in 2023, indicating a growth of 0.2%[25]. - The company reported a comprehensive income of $137,088 for Q2 2024, compared to $109,034 in Q2 2023, an increase of 25.7%[21]. - The company reported a decrease in unearned premiums to $206,094 thousand from $225,396 thousand, a decline of approximately 9%[17]. - The company reported net unrealized losses on investments of $14.8 million for the three months ended June 30, 2024, compared to losses of $37.1 million for the same period in 2023[23]. Revenue and Growth - New insurance written (NIW) for the quarter was $2.5 billion, a 10% increase compared to the previous quarter[2]. - The company expects a revenue growth of 12% for the next fiscal year, driven by market expansion and new product offerings[2]. - Total revenues reached $321,147, representing a 10.8% increase compared to $289,579 in the prior year[19]. - Total revenues for Q2 2024 reached $321,147 thousand, up 10.8% from $289,579 thousand in Q2 2023[47]. - Total revenues for the six months ended June 30, 2024, of $640,565 thousand, compared to $599,431 thousand in 2023, reflecting a growth of 6.9%[47]. Assets and Liabilities - Total assets increased to $8,129,643 thousand as of June 30, 2024, compared to $7,593,933 thousand at December 31, 2023, reflecting a growth of approximately 7%[17]. - Total liabilities rose to $3,647,324 thousand, up from $3,196,128 thousand, marking an increase of around 14%[17]. - Stockholders' equity increased to $4,482,319 thousand from $4,397,805 thousand, showing a growth of about 2%[17]. - The company’s additional paid-in capital decreased to $1,356,341 thousand from $1,430,594 thousand, a decline of approximately 5%[17]. Insurance and Market Activity - The persistency rate for insurance in force (IIF) was 85%, indicating strong retention of policies[2]. - Total direct primary mortgage insurance in force (IIF) reached $272.8 billion as of June 30, 2024, up from $270.0 billion as of December 31, 2023, indicating a growth of 1.0%[30]. - The company reported a New Insurance Written (NIW) of $450 million for the quarter, reflecting a significant increase in mortgage insurance activity[7]. - The company is focused on maintaining eligibility under the PMIERs to ensure continued insurance of loans purchased by GSEs[11]. Expenses and Financial Management - Total expenses increased to $133,024, up 24.5% from $106,903 in the same period last year[19]. - Interest expense for the six months ended June 30, 2024, was $56,110 thousand, compared to $43,244 thousand for the same period in 2023, reflecting an increase of approximately 29.8%[106]. - The company has initiated a share buyback program worth $100 million to enhance shareholder value[2]. - The company reported a net cash outflow of $156,238, compared to a cash inflow of $189,249 in the same period last year[25]. Strategic Initiatives - The company plans to enter three new markets in 2024, aiming to increase its market share by 5%[2]. - A new technology platform is set to launch in Q2 2024, expected to enhance operational efficiency and customer experience[2]. - The company is exploring potential acquisitions to expand its market presence and enhance service offerings in the mortgage insurance sector[11]. - The company is actively pursuing new technology developments to enhance its real estate services, aiming to improve data analytics capabilities[11]. Shareholder Returns - The company declared dividends totaling $39,391, compared to $38,001 in the same period last year[23]. - The quarterly dividend was increased from $0.225 to $0.245 per share starting in February 2024, with total annual dividends per share declared and paid amounting to $0.490 for 2024[122]. - Radian Group's board approved a share repurchase program with a total authorization of up to $900 million, with $667 million remaining available as of June 30, 2024[120]. Compliance and Regulatory Matters - The company emphasized the importance of maintaining adequate capital levels in its insurance subsidiaries to meet regulatory requirements[13]. - Radian Guaranty maintained a Risk-to-capital ratio of 10.3:1 as of June 30, 2024, compared to 10.4:1 as of December 31, 2023, indicating compliance with statutory RBC requirements[129]. - Radian Group Inc. was in compliance with all financial requirements set by state regulators and loan purchasers as of June 30, 2024[74]. Investment and Market Conditions - The company reported net losses on investments and other financial instruments of $(4,438) thousand in Q2 2024, compared to $(331) thousand in Q2 2023[47]. - The company expects to hold investments in an unrealized loss position until recovery of their amortized cost basis, indicating no anticipated realized losses[59]. - The company reported a total of $71.1 billion in risk in force (RIF) as of June 30, 2024, compared to $69.7 billion as of December 31, 2023, reflecting a growth of 2.0%[30].

Radian Group Inc. (RDN) reported second-quarter 2024 adjusted operating income of 99 cents per share, which beat the Zacks Consensus Estimate by 13.8%. Moreover, the bottom line increased 8.8% year over year. Operating revenues increased 12.3% year over year to $325.6 million due to higher net premiums earned, services revenues and net investment income. The results reflected solid performance across both Mortgage and All Other segments, higher primary mortgage insurance in force, improved investment income ...

Radian (RDN) came out with quarterly earnings of $0.99 per share, beating the Zacks Consensus Estimate of $0.87 per share. This compares to earnings of $0.91 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 13.79%. A quarter ago, it was expected that this mortgage insurer would post earnings of $0.83 per share when it actually produced earnings of $1.03, delivering a surprise of 24.10%. Over the last four quarters, the company ...