ACT Earnings Prediction
The chart below shows how ACT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ACT sees a -1.35% change in stock price 10 days leading up to the earnings, and a +3.33% change 10 days following the report. On the earnings day itself, the stock moves by -0.49%. This data can give you a slight idea of what to expect for the next quarter's release.
ACT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
309.59M
3.53%
3.60%
Gross Margin
--
--
--
Operating Margin
78.36%
3.66%
-10.90%
Net Margin
58.36%
6.28%
-5.04%
EPS
1.15
12.75%
-0.86%
No Data Available
ACT Earnings Analysis
Enact Holdings, Inc. Common Stock Corporation (ACT.O) Earnings Conference Call
Positive
Adjusted Operating Income Increase: 1. Strong Adjusted Operating Income: Enact reported an adjusted operating income of $182 million, reflecting an 11% increase year-over-year.
Record Insurance Growth: 2. Record Insurance in Force: The company achieved a record insurance in force of $268 billion, up $2 billion sequentially and $6 billion year-over-year.
Strong Capital Sufficiency: 3. Robust Capital Position: Enact's PMIER sufficiency was 173%, equating to $2.2 billion above requirements, indicating a strong capital position.
Capital Return to Shareholders: 4. Significant Capital Return to Shareholders: The company returned $100 million to shareholders through share buybacks and dividends in the quarter, totaling $283 million for the year-to-date.
Investment Income Surge: 5. Increased Investment Income: Investment income rose to $61 million, marking an 11% increase year-over-year, driven by elevated interest rates and improved portfolio yields.
Negative
Insurance Written Decline: 1. Decline in New Insurance Written: New insurance written was approximately $14 billion, flat sequentially but down 6% year-over-year, primarily driven by lower estimated market share.
New Delinquency Trends: 2. Increase in New Delinquencies: New delinquencies rose to 13,000 from 10,500 sequentially, with a new delinquency rate of 1.4%, reflecting ongoing positive credit trends but also indicating a concerning upward trend.
Loss Performance Deterioration: 3. Higher Loss Ratio: Losses in Q3 2024 were $12 million with a loss ratio of 5%, compared to negative $17 million and negative 7% in Q2 2024, indicating a deterioration in loss performance.
Operating Expenses Stability: 4. Flat Operating Expenses: Operating expenses remained flat at $56 million, with an expense ratio of 22%, suggesting challenges in cost management despite efforts to control expenses.
Ceded Premiums Pressure Revenue: 5. Ceded Premiums Impacting Revenue: The growth in net premiums earned was partially offset by higher ceded premiums, indicating pressure on revenue despite a slight increase in overall premiums.
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ACT Earning Call Sentiment
Enact Holdings, Inc. (ACT) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
ACT.O
-0.53%Positive
The earnings call summary shows strong financial performance with increased adjusted operating income and EPS, a solid capital return plan, and a maintained dividend. Despite some concerns in the Q&A, such as management's unclear responses about regulations and buydown volumes, the overall sentiment is positive. The company's strategic moves, including share repurchases and a strong capital return guidance, indicate a favorable outlook. Given the market cap, the stock price is likely to rise by 2% to 8% over the next two weeks.