Radian Group Whiffs on Revenues

Just the facts, Fool.

Seth Jayson
Seth Jayson
May 1, 2013 at 12:00AM
Other

Radian Group (NYSE: RDN) reported earnings on May 1. Here are the numbers you need to know.

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. GAAP loss per share grew.

Margins dropped across the board.

Revenue details
Radian Group logged revenue of $42.4 million. The five analysts polled by S&P Capital IQ foresaw revenue of $223.1 million on the same basis. GAAP reported sales were 76% lower than the prior-year quarter's $180.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$1.41. The six earnings estimates compiled by S&P Capital IQ predicted $0.00 per share. GAAP EPS were -$1.41 for Q1 against -$1.28 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was -247.0%, much worse than the prior-year quarter. Operating margin was -433.2%, much worse than the prior-year quarter. Net margin was -435.9%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)


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Looking ahead
Next quarter's average estimate for revenue is $231.1 million. On the bottom line, the average EPS estimate is -$0.05.

Next year's average estimate for revenue is $931.1 million. The average EPS estimate is -$0.20.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 440 members out of 617 rating the stock outperform, and 177 members rating it underperform. Among 141 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 93 give Radian Group a green thumbs-up, and 48 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Radian Group is outperform, with an average price target of $10.64.

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