Mortgage insurance provider Essent Group (NYSE: ESNT) will be announcing earnings results this Friday before market hours. Here’s what you need to know.
Essent Group beat analysts’ revenue expectations by 2.1% last quarter, reporting revenues of $317.6 million, up 6.4% year on year. It was a mixed quarter for the company, with net premiums earned in line with analysts’ estimates but EPS in line with analysts’ estimates.
Is Essent Group a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Essent Group’s revenue to grow 1.2% year on year to $316.8 million, slowing from the 20.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.71 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Essent Group has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Essent Group’s peers in the property & casualty insurance segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Root delivered year-on-year revenue growth of 32.4%, beating analysts’ expectations by 7.5%, and Mercury General reported revenues up 13.2%, topping estimates by 2%. Mercury General’s stock price was unchanged following the results.
Read our full analysis of Root’s results here and Mercury General’s results here.
Investors in the property & casualty insurance segment have had fairly steady hands going into earnings, with share prices down 1% on average over the last month. Essent Group is down 2.9% during the same time and is heading into earnings with an average analyst price target of $65 (compared to the current share price of $57.85).
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