The 10-second takeaway
For the quarter ended June 30 (Q2), Radian Group beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share grew. GAAP loss per share dropped.
Margins grew across the board.
Radian Group recorded revenue of $243.0 million. The four analysts polled by S&P Capital IQ expected sales of $231.6 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $157.6 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 $0.05. The five earnings estimates compiled by S&P Capital IQ forecast -$0.04 per share. Non-GAAP EPS were $0.05 for Q2 compared to -$0.38 per share for the prior-year quarter. GAAP EPS were -$0.19 for Q2 against -$0.90 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 24.5%, much better than the prior-year quarter. Operating margin was -6.1%, much better than the prior-year quarter. Net margin was -16.7%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $239.6 million. On the bottom line, the average EPS estimate is -$0.04.
Next year's average estimate for revenue is $803.5 million. The average EPS estimate is -$0.65.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 437 members out of 626 rating the stock outperform, and 189 members rating it underperform. Among 147 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 98 give Radian Group a green thumbs-up, and 49 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 $13.14.
Looking for alternatives to Radian Group? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Radian Group to My Watchlist.
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. The Motley Fool has no position in any of the stocks mentioned. 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.