Free Post Earnings Research Report: Radian's Quarterly Sales Grew 5%; Adjusted EPS Surged 24%
Stock Monitor: Arch Capital Group Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 23, 2018 / Active-Investors.com has just released a free earnings report on Radian Group Inc. (NYSE: RDN) (''Radian''). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=RDN. The Company reported its fourth quarter fiscal 2017 and full fiscal year 2017 operating and financial results on February 01, 2018. The mortgage insurer outperformed top- and bottom-line expectations. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Radian Group most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
For the three months ended December 31, 2017, Radian reported revenues of $245.18 million, up 5% compared to $233.59 million in Q4 2016. The Company's revenue numbers exceeded analysts' estimates by $2.92 million.
For the full year FY17, Radian reported revenues of $932.77 million compared to $921.77 million in FY16.
Radian's adjusted pre-tax operating income was $172.5 million for Q4 2017 compared to $140.2 million for Q4 2016.
Radian reported a net income of $6.8 million, or $0.03 per diluted share, for Q4 2017, which includes an incremental tax provision of $102.6 million, representing the estimated impact of the recently enacted tax reform. This compares to a net income of $61.1 million, or $0.27 per diluted share, for Q4 2016. The Company's adjusted diluted net operating income per share was $0.51 for the reported quarter, reflecting an increase of 24% compared to $0.41 for the prior year's same quarter, and beating Wall Street's estimates of $0.45.
Radian reported a net income of $121.1 million, or $0.55 per diluted share, for FY17, which, in addition to the incremental tax provision, included impairment of goodwill and other intangible assets related to the Mortgage and Real Estate Services segment of $130.9 million. This compares to a net income of $308.3 million, or $1.37 per diluted share, for FY16. The Company's adjusted diluted net operating income per share was $1.82 for FY17, representing an increase of 17% compared to $1.56 for FY16.
Segment Results
Mortgage Insurance - During Q4 2017, Radian's Mortgage Insurance (MI) segment's new insurance written (NIW) was $14.4 billion, reflecting an increase of 4% compared to $13.9 billion in Q4 2016. Of the $14.4 billion in NIW in the reported quarter, 23% was written with single premiums.
Radian's purchase originations accounted for 88% of total NIW in Q4 2017 compared to 73% in Q4 2016. The total primary mortgage insurance in force grew to $200.7 billion as of December 31, 2017, an increase of 9% compared to $183.5 billion as of December 31, 2016.
The Company's Persistency, which is the percentage of mortgage insurance that remains in force after a twelve-month period, was 81.1% as of December 31, 2017, compared to 76.7% as of December 31, 2016. Radian's total net premiums earned were $245.2 million for Q4 2017 compared to $233.6 million for Q4 2016.
Radian's accelerated revenue recognition due to single premium policy cancellations was $21.2 million in Q4 2017 compared to $26.7 million in Q4 2016. For Q4 2017, Radian's direct mortgage insurance premium yield was 52 basis points compared to 55 basis points in Q4 2016.
Radian's total number of primary delinquent loans was 27,922 in Q4 2017, down 4% from 29,105 in Q4 2016. Radian's primary mortgage insurance delinquency rate was 2.9% in Q4 2017 compared to 3.2% in Q4 2016. The Company's loss ratio was 14.4% in the reported quarter versus 23.4% in the prior year's comparable quarter.
Radian's total mortgage insurance claims paid were $85.5 million in Q4 2017 compared to $116.5 million in Q4 2016. The Company's pending claim inventory declined 38% on a y-o-y basis. For FY17, Radian's total net claims paid were $390.4 million compared to $417.6 million for FY16.
Mortgage and Real Estate Services - For Q4 2017, Radian's Mortgage and Real Estate Services segment's total revenues were $40.7 million compared to $52.6 million for Q4 2016. The segment's adjusted pre-tax operating income before corporate allocations, including $1.4 million in restructuring and other exit costs, was $2.9 million for the reported quarter compared to $3.6 million for the year ago corresponding period.
The segment's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA), which includes $1.4 million in restructuring and other exit costs, was $3.8 million in Q4 2017 compared to $4.4 million in Q4 2016.
Capital and Liquidity Update
As of December 31, 2017, Radian maintained $229 million of available liquidity. The Company's total liquidity, including its $225 million unsecured revolving credit facility entered into in October 2017, was $454 million as of December 31, 2017. During Q4 2017, Radian settled all of its remaining convertible senior notes outstanding.
Book Value
Radian's book value per share was $13.90 at December 31, 2017, reflecting an increase of 4% compared to $13.39 at December 31, 2016. The Company's tangible book value per share was $13.60 at December 31, 2017, representing an increase of 12% compared to $12.10 at December 31, 2016.
Stock Performance Snapshot
February 22, 2018 - At Thursday's closing bell, Radian Group's stock dropped 1.73%, ending the trading session at $21.06.
Volume traded for the day: 756.42 thousand shares.
Stock performance in the last three-month - up 0.24%; previous six-month period - up 22.09%; past twelve-month period - up 12.08%; and year-to-date - up 2.18%
After yesterday's close, Radian Group's market cap was at $4.51 billion.
Price to Earnings (P/E) ratio was at 38.57.
The stock has a dividend yield of 0.05%.
The stock is part of the Financial sector, categorized under the Property & Casualty Insurance industry.
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