The 10-second takeaway
For the quarter ended March 31 (Q1), Radian Group whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share shrank to a loss.
Margins dropped across the board.
Radian Group chalked up revenue of $180.4 million. The five analysts polled by S&P Capital IQ predicted sales of $205.6 million on the same basis. GAAP reported sales were 70% lower than the prior-year quarter's $604.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$1.44. The five earnings estimates compiled by S&P Capital IQ averaged -$0.55 per share. GAAP EPS were -$1.28 for Q1 compared to $0.77 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was -63.1%, 9,010 basis points worse than the prior-year quarter. Operating margin was -90.9%, 11,020 basis points worse than the prior-year quarter. Net margin was -93.8%, 11,080 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $216.4 million. On the bottom line, the average EPS estimate is -$0.46.
Next year's average estimate for revenue is $856.6 million. The average EPS estimate is -$1.68.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 405 members rating the stock outperform and 181 members rating it underperform. Among 148 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 79 give Radian Group a green thumbs-up, and 69 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Radian Group is hold, with an average price target of $5.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.