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Essent Group (ESNT) to Report Q3 Earnings: What's in Store?

Zacks Equity Research

Essent Group ESNT is slated to report third-quarter 2019 results on Nov 8. The company delivered a positive earnings surprise in the two reported quarters of 2019.

Factors to Consider

Essent Group’s third-quarter results are likely to have benefited from lower interest rate, improved employment, favorable credit and higher new and existing home sales.

Third-quarter premiums are likely to have increased given solid insurance in force. Higher utilization of EssentEDGE, its risk-based pricing engine, is likely to have added to the upside.

The company estimates the singles cancellation income in third quarter to decline from the strong level experienced in the second quarter. This is based on reinsurance in place and expectation of pricing for new business, it projects average net premium rate to be in the range of 46 to 47 basis points in the second half of 2019.

The Zacks Consensus Estimate for earnings per share is pegged at $1.38, indicating nearly 17% increase from the year-ago period reported figure.

Essent Group Ltd. Price, Consensus and EPS Surprise

Essent Group Ltd. Price, Consensus and EPS Surprise

Essent Group Ltd. price-consensus-eps-surprise-chart | Essent Group Ltd. Quote

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Essent Group this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But this is not the case as you can see below.

Earnings ESP: Essent Group has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate is pegged at $1.38. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Essent Group currently carries a Zacks Rank #2.    

Stocks to Consider

Some stocks from the finance sector with the apt combination of elements to surpass estimates this reporting cycle are as follows:

Physicians Realty Trust DOC is set to report third-quarter earnings on Nov 6. It has an Earnings ESP of +3.85% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Hallmark Financial Services HALL is set to report third-quarter earnings on Nov 7. It has an Earnings ESP of +3.03% and a Zacks Rank of 3.

NMI Holdings NMIH is set to report third-quarter earnings on Nov 6. It has an Earnings ESP of +1.64% and a Zacks Rank of 3.

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Essent Group Ltd. (ESNT) : Free Stock Analysis Report
 
Hallmark Financial Services, Inc. (HALL) : Free Stock Analysis Report
 
NMI Holdings Inc (NMIH) : Free Stock Analysis Report
 
Physicians Realty Trust (DOC) : Free Stock Analysis Report
 
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