Stewart Information Services Earnings: Everything You Must Know Now

Stewart Information Services Corp. (NYSE:STC) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

Stewart Information Services Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $2.56 in the quarter versus EPS of $0.11 in the year-earlier quarter.

Revenue: Rose 17.06% to $521 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Stewart Information Services Corp. reported adjusted EPS income of $2.56 per share. By that measure, the company beat the mean analyst estimate of $1.08. It beat the average revenue estimate of $507.35 million.

Quoting Management: “2012 was a turnaround year for Stewart on many fronts. Not only did we see many of our strategic initiatives delivering profits, but our streamlined management team was able to capitalize on an improving market,” said Matthew W. Morris, chief executive officer. “Our pretax earnings of $89.3 million represent the best year for us since 2006, a year in which revenues were 29.4 percent greater than in 2012. The momentum we experienced in the second and third quarters carried into the fourth quarter, as demonstrated by the solid results of operations for that quarter. We continued our emphasis on profitable growth, cost effectiveness and prudent risk management. These focused efforts, and the dedicated commitment of our associates worldwide, enabled us to achieve a 25.9 percent pretax margin on the increase in full year revenues over 2011.”

Key Stats (on next page)…

Revenue increased 0.05% from $520.74 million in the previous quarter. EPS increased 76.55% from $1.45 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 $0.72 to a profit $0.65. For the current year, the average estimate has moved up from a profit of $2.83 to a profit of $2.89 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)