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Post Earnings Coverage as Fidelity National Financial Group's Q1 Bottom-line Outperformed Forecasts

Upcoming AWS Coverage on Investors Title Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 17, 2017 / Active Wall St. announces its post-earnings coverage on Fidelity National Financial, Inc. (NYSE: FNF). The Company posted its first quarter fiscal 2017 (Q1 FY17) operating results on May 03, 2017. The Jacksonville, Florida-based Company's adjusted diluted earnings per share were grew on year-over-year basis; beating market consensus estimates. Register with us now for your free membership at:

http://www.activewallst.com/register/

One of Fidelity National Financial's competitors within the Surety & Title Insurance space, Investors Title Co. (NASDAQ: ITIC), reported on May 04, 2017, its results for the quarter ended March 31, 2017. AWS will be initiating a research report on Investors Title in the coming days.

Today, AWS is promoting its earnings coverage on FNF; touching on ITIC. Get our free coverage by signing up to:

http://www.activewallst.com/register/

Earnings Reviewed

In Q1 FY17, FNF Group's total revenue increased to a $2.22 billion from $2.05 billion recorded at the end of Q1 FY16. During the reported quarter, the Company's core total revenue was $1.89 billion compared to $1.72 billion in Q1 FY16.

During the reported quarter, the Company's net earnings attributable to FNF Group's common shareholders came in at $71 million, or $0.25 per diluted share, compared to $73 million, or $0.26 per diluted share, in prior year's comparable quarter. Meanwhile, the Company's adjusted earnings attributable to FNF Group's common shareholders for Q1 FY17 was $118 million, or $0.42 per diluted share, compared to $94 million, or $0.33 per diluted share, in Q1 FY16. Wall Street had expected the Company to post adjusted diluted earnings per share of $0.36 per share in the reported quarter.

Operational Metrics

For Q1 FY17, the title insurance, mortgage, and other services provider's total expenses were $2.06 billion compared to $1.92 billion in the previous year quarter. The Company reported pre-tax earnings from continuing operations of $160 million versus $130 million in Q1 FY16. Furthermore, adjusted pre-tax earnings from continuing operations grew to $216 million, or 11.4% of total revenue, from $176 million, or 10.2% of total revenues, in the year ago same quarter. The Company's EBIDTA also grew to $295 million in the reported period from $251 million in the prior year's comparable quarter. Additionally, adjusted EBITDA as a percentage of total revenue stood at 15.6% in Q1 FY17 compared to 14.6% in Q1 FY16.

Segment Performance

In the quarter ended March 31, 2017, Title segment's revenues grew 9% to $1.57 billion from $1.45 billion reported in the last year's same quarter. The segment reported adjusted pre-tax earnings of $175 million in Q1 FY17 compared to $142 million in Q1 FY16. The segment reported adjusted pre-tax title margin of 11.1% in Q1 FY17 compared to 9.8% in the previous year's same period. In Q1 FY17, purchase orders opened and closed increased by 6% and 11% y-o-y, respectively. Furthermore, average fee per file rose 6% y-o-y to $2,148 in Q1 FY17.

Black Knight Financial Service (BKFS) segment reported total revenue of $256 million in Q1 FY17 compared to $242 million in Q1 FY16. The segment's adjusted pre-tax earnings grew to $67 million, or 25.9% of the segment's revenues, in Q1 FY17 from $63 million, or 25.8% of the segment's revenues, in the last year's comparable quarter. Additionally, the segment's adjusted EBITDA also grew to $114 million, or 46.0% of the segment's revenues, in Q1 FY17 from $107 million, or 45.1% of the segment's revenues, in Q1 FY16.

Cash Matters and Balance Sheet

FNF Group's net cash provided by operating was $4 million in the reported period compared to $92 million in Q1 FY16. The Company ended the quarter with cash and cash equivalents balance of $1.30 billion versus $1.32 billion as on December 31, 2016. Furthermore, the Company's cash and cash equivalents balance includes pledged cash related to secured trust deposits amounting to $398 million and $331 million as on March 31, 2017, and December 31, 2016, respectively.

Dividend

In a separate press release on May 03, 2017, Fidelity National Financial's Board of Directors declared an FNF Group (FNF) quarterly cash dividend of $0.25 per share. The dividend will be payable June 30, 2017, to stockholders of record as of June 16, 2017.

Stock Performance

On Tuesday, May 16, 2017, the stock closed the trading session at $41.17, slightly up 0.51% from its previous closing price of $40.96. A total volume of 1.49 million shares have exchanged hands, which was higher than the 3-month average volume of 1.08 million shares. Fidelity National Financial's stock price rallied 10.92% in the last three months, 29.12% in the past six months, and 25.47% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 22.05%. The stock is trading at a PE ratio of 22.21 and has a dividend yield of 2.43%.

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