ESNT Earnings Prediction
The chart below shows how ESNT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ESNT sees a +1.42% change in stock price 10 days leading up to the earnings, and a +1.54% change 10 days following the report. On the earnings day itself, the stock moves by -0.90%. This data can give you a slight idea of what to expect for the next quarter's release.
ESNT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
316.58M
6.91%
1.16%
Gross Margin
--
--
--
Operating Margin
69.19%
-5.80%
-12.36%
Net Margin
55.65%
-7.40%
-14.46%
EPS
1.65
-0.60%
-13.61%
No Data Available
ESNT Earnings Analysis
Essent Group LTD Corporation (ESNT.N) Earnings Conference Call
Positive
Consistent Net Income: 1. Strong Net Income: Essent Group reported a net income of $176 million for Q3 2024, demonstrating consistent profitability compared to $178 million in the same quarter last year.
Mortgage Insurance Growth: 2. Increased Insurance in Force: The company's US mortgage insurance in force reached $243 billion, marking a 2% increase from the previous year, reflecting growth in their portfolio.
Strong Policy Retention: 3. High Persistency Rate: The persistency rate for the mortgage insurance portfolio was approximately 87%, indicating strong retention of policies compared to the previous quarter.
Strong Cash Reserves: 4. Robust Cash Position: As of September 30th, Essent held $6.4 billion in cash and investments, with a new money yield of nearly 5%, enhancing their financial stability.
Capital Return to Investors: 5. Shareholder Returns: The company paid a dividend of $29.5 million to shareholders and repurchased 170,000 shares for $9.6 million, demonstrating a commitment to returning capital to investors.
Negative
Earnings Per Share Decline: 1. Declining Earnings Per Share: The diluted earnings per share decreased to $1.65 in Q3 2024 from $1.91 in Q2 2024, indicating a decline in profitability.
Rising Mortgage Default Rate: 2. Increased Default Rate: The default rate on the US mortgage insurance portfolio rose to 1.95%, up 24 basis points from 1.71% at the end of Q2 2024, reflecting worsening credit conditions.
Increased Loss Provisions: 3. Higher Provision for Losses: A provision for losses and loss adjustment expenses of $30.7 million was recorded in Q3 2024, compared to a benefit of $334,000 in Q2 2024, indicating increased risk in the portfolio.
Average Premium Rate Decline: 4. Decreased Average Premium Rate: The net average premium rate fell to 35 basis points in Q3 2024, down 1 basis point from the previous quarter, suggesting reduced revenue potential from premiums.
Rising Operating Expenses: 5. Increased Operating Expenses: Other underwriting and operating expenses totaled $57.3 million in Q3 2024, which includes $14.8 million of title expenses, indicating rising costs that could impact profitability.
ESNT FAQs
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ESNT Earning Call Sentiment
Essent Group Ltd. (ESNT) Q3 2024 Earnings Call Transcript
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00:00
00:00
ESNT.N
0.84%Positive
The earnings call summary presents mixed signals. Basic Financial Performance is stable, but with slight declines in net income and EPS. Product Development and Business Update are neutral with no significant advancements. Market Strategy is moderately positive due to the reinsurance strategy. Expenses and Financial Health are stable, but default rates are rising. Shareholder Return Plan is neutral with modest dividends and repurchases. The Q&A highlights risks from hurricanes and regulatory changes but no major negative sentiment from analysts. Overall, the sentiment is neutral, balancing positive and negative factors.
