We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Stewart Information (STC) Q1 Earnings & Revenues Rise Y/Y
Read MoreHide Full Article
Stewart Information Services Corporation (STC - Free Report) first-quarter 2021 adjusted earnings of $1.92 per share increased more than three-fold year over year.
Shares gained 0.2% in the last trading session, reflecting the solid performance,
Results benefited from continued strong trends in residential real estate transaction activity as well as robust growth in international and newly-acquired ancillary services businesses. The quarterly performance reflects the company’s sustained focus on targeted growth and broader technology and services offerings.
Stewart Information Services Corporation Price, Consensus and EPS Surprise
Operating revenues of $689 million increased 56.6% year over year on the back of higher revenues from direct operations, agency operations and ancillary services.
Net investment income, however, decreased 24.4% to $3.9 million.
Total expense of $614.9 million increased 42.7% year over year due to increase in amounts retained by agencies, employee costs, other operating expenses and title losses and related claims.
Opened orders totaled 0.2 million, up 28.7% year over year. Closed orders totaled 0.1 million, up 66.4% year over year
Segment Results
Title: Operating revenues increased 42% year over year to $625.4 million. The upside was driven by increases in direct title revenues and gross independent agency revenues.
Pretax margin of 12.2% expanded 880 bps year over year.
Ancillary Services and Corporate: Operating revenues increased more than ten fold year over year to $55.9 million, driven by acquisitions.
Pretax loss narrowed to $3.1 million from $5.6 million incurred in the year-ago quarter.
Financial Update
Stewart Information exited the quarter with cash and cash equivalents of $412.7 million, down 4.6% from 2020 end. Notes and contracts payable were $125.6 million, up 23.4%.
Stockholders’ equity was $1 billion, up 3.5% from 2020 end.
Cash flow from operations was $47.4 million versus $11.4 million used in the year-ago quarter.
Of the insurance industry players that have reported first-quarter results so far, The Travelers Companies (TRV - Free Report) , W.R. Berkley Corporation (WRB - Free Report) and RLI Corporation (RLI - Free Report) beat the Zacks Consensus Estimate for earnings.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. See 3 crypto-related stocks now >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Stewart Information (STC) Q1 Earnings & Revenues Rise Y/Y
Stewart Information Services Corporation (STC - Free Report) first-quarter 2021 adjusted earnings of $1.92 per share increased more than three-fold year over year.
Shares gained 0.2% in the last trading session, reflecting the solid performance,
Results benefited from continued strong trends in residential real estate transaction activity as well as robust growth in international and newly-acquired ancillary services businesses. The quarterly performance reflects the company’s sustained focus on targeted growth and broader technology and services offerings.
Stewart Information Services Corporation Price, Consensus and EPS Surprise
Stewart Information Services Corporation price-consensus-eps-surprise-chart | Stewart Information Services Corporation Quote
Behind the Headlines
Operating revenues of $689 million increased 56.6% year over year on the back of higher revenues from direct operations, agency operations and ancillary services.
Net investment income, however, decreased 24.4% to $3.9 million.
Total expense of $614.9 million increased 42.7% year over year due to increase in amounts retained by agencies, employee costs, other operating expenses and title losses and related claims.
Opened orders totaled 0.2 million, up 28.7% year over year. Closed orders totaled 0.1 million, up 66.4% year over year
Segment Results
Title: Operating revenues increased 42% year over year to $625.4 million. The upside was driven by increases in direct title revenues and gross independent agency revenues.
Pretax margin of 12.2% expanded 880 bps year over year.
Ancillary Services and Corporate: Operating revenues increased more than ten fold year over year to $55.9 million, driven by acquisitions.
Pretax loss narrowed to $3.1 million from $5.6 million incurred in the year-ago quarter.
Financial Update
Stewart Information exited the quarter with cash and cash equivalents of $412.7 million, down 4.6% from 2020 end. Notes and contracts payable were $125.6 million, up 23.4%.
Stockholders’ equity was $1 billion, up 3.5% from 2020 end.
Cash flow from operations was $47.4 million versus $11.4 million used in the year-ago quarter.
Zacks Rank
Stewart Information currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance of Other Insurers
Of the insurance industry players that have reported first-quarter results so far, The Travelers Companies (TRV - Free Report) , W.R. Berkley Corporation (WRB - Free Report) and RLI Corporation (RLI - Free Report) beat the Zacks Consensus Estimate for earnings.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 3 crypto-related stocks now >>