The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Radian Group crushed expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Radian Group booked revenue of $260.8 million. The six analysts polled by S&P Capital IQ looked for revenue of $214.3 million on the same basis. GAAP reported sales were 49% lower than the prior-year quarter's $510.0 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 -$0.21. The six earnings estimates compiled by S&P Capital IQ anticipated -$0.52 per share. GAAP EPS of $0.11 for Q3 were 92% lower than the prior-year quarter's $1.37 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 27.2%, 2,160 basis points worse than the prior-year quarter. Operating margin was 7.7%, 3,220 basis points worse than the prior-year quarter. Net margin was 5.5%, 3,050 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $228.4 million. On the bottom line, the average EPS estimate is -$0.53.
Next year's average estimate for revenue is $820.7 million. The average EPS estimate is -$2.71.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 396 members out of 576 rating the stock outperform, and 180 members rating it underperform. Among 140 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 80 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 $3.79.
- Add Radian Group to My Watchlist.