RDN Earnings Prediction
The chart below shows how RDN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, RDN sees a -2.80% change in stock price 10 days leading up to the earnings, and a -0.67% change 10 days following the report. On the earnings day itself, the stock moves by -0.05%. This data can give you a slight idea of what to expect for the next quarter's release.
RDN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
315.86M
-3.12%
-5.39%
Gross Margin
--
--
--
Operating Margin
67.00%
-2.49%
-4.75%
Net Margin
46.95%
7.27%
3.19%
EPS
0.98
8.89%
-1.01%
No Data Available
RDN Earnings Analysis
Radian Group Inc Corporation (RDN.N) Earnings Conference Call
Positive
Book Value and Net Income: Increased book value per share by 9% year over year, reaching $31.33, and generated net income of $604 million with a return on equity of 13.4%.
Capital Return to Stockholders: Returned $376 million of capital to stockholders through share repurchases and dividends, including $224 million in share repurchases for the full year.
Mortgage Insurance Milestone: Achieved an all-time high in primary mortgage insurance in force at $275 billion, with a 2% year-over-year growth and $2 billion of new insurance written for 2024.
Revenue and Premium Growth: Generated total revenues of $1.3 billion for the full year, a 4% increase compared to 2023, with net premiums earned growing by 3% to $939 million.
Fitch Ratings Upgrade: Received a ratings upgrade from Fitch to an A financial strength rating for Radian Guaranty, reflecting the company's strong capital position and financial performance.
Negative
Net Investment Income Decline: The net investment income decreased by $7 million quarter over quarter, attributed to the use of $450 million in cash to redeem senior notes, indicating a decline in financial performance.
Investment Portfolio Loss Increase: The unrealized net loss on investments increased to $350 million at the end of 2024, up from $331 million at the end of 2023, reflecting a deterioration in investment portfolio value.
Rising Default Rates: The ending default inventory rose to approximately 24,000 loans, resulting in a portfolio default rate of 2.44%, an increase from 2.20% at year-end 2023, signaling a worsening credit quality.
Rising Operating Expenses: Operating expenses increased to $88 million in the fourth quarter, up from $86 million in the third quarter, indicating rising costs despite efforts to manage expenses.
Ongoing Operating Loss Challenges: The adjusted pretax operating loss for the 'all other' category was $6 million in the fourth quarter, consistent with the same period in 2023, highlighting ongoing challenges in that segment.
RDN FAQs
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RDN Earning Call Sentiment
Radian Group Inc. (NYSE:RDN) Q4 2024 Earnings Call Transcript
RDN.N
0.64%Positive
The earnings call highlights strong financial performance with increased net income, EPS, and book value per share. Shareholder returns are robust with significant dividends and share repurchases. Despite competitive pressures and some investment risks, the company's operational efficiency and low loss ratio are positive indicators. The Q&A reveals no major concerns, and management's avoidance of specific guidance is not unusual. Given the market cap of $4.6 billion, the stock is likely to see a positive reaction, but not overwhelmingly so, hence a rating of 'Positive' (2% to 8%).
