Radian Group (NYSE: RDN) is expected to report Q3 earnings on Oct. 30. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Radian Group's revenues will contract -55.8% and EPS will remain in the red.
The average estimate for revenue is $224.6 million. On the bottom line, the average EPS estimate is -$0.52.
Revenue details
Last quarter, Radian Group booked revenue of $158.2 million. GAAP reported sales were 66% lower than the prior-year quarter's $435.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
Last quarter, non-GAAP EPS came in at -$0.38. GAAP EPS were -$0.90 for Q2 against $1.03 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Recent performance
For the preceding quarter, gross margin was -47.9%, 8,410 basis points worse than the prior-year quarter. Operating margin was -74.7%, 10,030 basis points worse than the prior-year quarter. Net margin was -79.5%, 11,100 basis points worse than the prior-year quarter.
Looking ahead
The full year's average estimate for revenue is $820.7 million. The average EPS estimate is -$2.71.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 399 members out of 578 rating the stock outperform, and 179 members rating it underperform. Among 138 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 78 give Radian Group a green thumbs-up, and 60 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 $5.08.
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