Stewart Reports Third Quarter 2024 Results

Core Viewpoint - Stewart Information Services Corporation reported strong financial results for the third quarter of 2024, with significant increases in total revenues, net income, and earnings per share compared to the same quarter in the previous year, despite challenging market conditions in the residential purchase sector [1][2][3]. Financial Performance - Total revenues for Q3 2024 were $667.9 million, up 11% from $601.7 million in Q3 2023 [2][13]. - Net income attributable to Stewart was $30.1 million, compared to $14.0 million in the prior year, marking a 114% increase [1][2]. - Diluted earnings per share rose to $1.07 from $0.51 in Q3 2023, reflecting a 109% increase [1][2]. Segment Performance Title Segment - Operating revenues in the title segment increased by $31.2 million, or 6%, driven by higher domestic commercial and agency title operations [4]. - The title segment's pretax income rose to $45.0 million, a 27% increase from $35.4 million in Q3 2023 [3][4]. - Direct title revenues totaled $270.7 million, up 6% from $256.4 million in the prior year [6]. Real Estate Solutions Segment - Operating revenues for the real estate solutions segment surged by 41% to $96.3 million, compared to $68.2 million in Q3 2023 [7]. - Pretax income for this segment increased by 181% to $7.4 million [7]. Corporate and Other Segment - Corporate expenses decreased to $9.5 million in Q3 2024 from $10.8 million in Q3 2023, primarily due to a prior acquisition-related settlement expense [8]. Expense Management - Consolidated employee costs increased by 7% to $193.9 million, driven by higher incentive compensation linked to increased revenues [8]. - Other operating expenses rose by 19% to $155.6 million, attributed to higher service expenses and outside search fees [8]. Cash Flow and Operational Metrics - Net cash provided by operations was $76.1 million, up from $59.5 million in Q3 2023, reflecting improved profitability [8]. - The company reported a book value per share of $50.77 as of September 30, 2024, compared to $50.11 at the end of 2023 [11].