Fidelity National Financial, Inc. (NYSE:FNF) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.
Fidelity National Financial, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 18.18% to $0.39 in the quarter versus EPS of $0.33 in the year-earlier quarter.
Revenue: Rose 72.28% to $2.05 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Fidelity National Financial, Inc. reported adjusted EPS income of $0.39 per share. By that measure, the company missed the mean analyst estimate of $0.41. It beat the average revenue estimate of $2 billion.
Quoting Management: “The first quarter was a great start to the year, with a continuation of the momentum we built in 2012,” said Chief Executive Officer George P. Scanlon. “We achieved our strongest first quarter in the title business since 2004, producing pre-tax earnings of $171 million and a pre-tax title margin of 12.3%. Title operating revenue grew by 19% over the first quarter of 2012, with pre-tax earnings increasing by 33% and the pre-tax margin improving by nearly 170 basis points. The commercial title business continued to perform solidly, with $88 million in revenue, a 6% increase over the first quarter of 2012. While we continue to operate in a refinance driven marketplace, we are continuing to see a growing percentage of our open orders coming from purchase transactions. During the first quarter, 38% of total title orders opened were purchase transactions, versus 36% in the first quarter of 2012, with the purchase mix increasing each month during the first quarter, peaking at nearly 41% of open orders in March. Overall, purchase orders opened and closed per day increased by 7% and 14%, respectively, in the first quarter versus the prior year. With an improving purchase market, continued low mortgage rates and a stabilizing economy, we are confident in our ability to continue to produce industry-leading earnings in our title business.”
Key Stats (on next page)…
Revenue decreased 8.28% from $2.24 billion in the previous quarter. EPS decreased 40.91% from $0.66 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.61 to a profit $0.59. For the current year, the average estimate has moved down from a profit of $1.95 to a profit of $1.92 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)