STC Earnings Prediction
The chart below shows how STC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, STC sees a -4.77% change in stock price 10 days leading up to the earnings, and a +0.91% change 10 days following the report. On the earnings day itself, the stock moves by -0.26%. This data can give you a slight idea of what to expect for the next quarter's release.
STC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
665.93M
14.39%
0.38%
Gross Margin
--
--
--
Operating Margin
6.85%
67.89%
5.22%
Net Margin
4.09%
81.78%
-19.33%
EPS
0.80
150.00%
-25.23%
No Data Available
STC Earnings Analysis
Stewart Information Services Corp Corporation (STC.N) Earnings Conference Call
Positive
Operating Cash Flow Increase: In Q2, net cash from operating activities reached $11.9 million, a 30% increase year-over-year, contributing to a fiscal year-to-date total of $24 million, representing a 41% increase over the prior year.
EBITDA Margin Improvement: Adjusted EBITDA improved by 3% to $10.1 million in Q2, with the adjusted EBITDA margin increasing from 16% to 17% of revenue, despite a sequential decline in top-line revenue.
Churn Rate Improvement: Churn rates improved significantly, dropping to below 0.95%, reflecting stronger client relationships and validating the focus on long-term recurring revenue streams.
Infrastructure Revenue Growth: Revenue from the infrastructure platform grew by more than 10% in the first half of fiscal 2025 compared to the prior year, indicating revitalization and strong demand in this high-margin business.
Debt Target Achievement: The company achieved its fiscal year-end debt target of $55 million to $60 million two quarters ahead of schedule, reducing net debt to $43.3 million and improving the net debt to adjusted EBITDA ratio to approximately 1.03 times.
Negative
Q2 Revenue Decline: Revenue for Q2 FY25 was $59.1 million, a decline of $1 million from Q1, primarily due to a $1.2 million decrease in third-party product resales.
Revenue Guidance Adjustment: The company adjusted its revenue guidance for FY25 down to $235 million to $240 million from a previous range of $250 million to $260 million, reflecting a strategic shift away from low-margin hardware sales.
Third-Party Hardware Decline: In Q2, the third-party hardware resale segment declined by $1.2 million compared to Q1, indicating limited potential for this segment to contribute to FY25 growth objectives.
Operating Cash vs. Revenue Decline: Despite a 30% increase in net cash from operating activities year-over-year, the overall revenue decline suggests challenges in sustaining growth in the core business.
Revised EBITDA Guidance Downward: The adjusted EBITDA guidance for FY25 was revised down to $40 million to $42 million from $42 million to $46 million, indicating a negative outlook on profitability despite improved margins.
STC FAQs
How does STC typically perform around its earnings report dates?
Is Stewart Information Services Corp (STC) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
STC Earning Call Sentiment
Earnings call transcript: Stewart Info Services beats Q4 2024 expectations
STC.N
1.71%Positive
The earnings call reflects a mixed sentiment. While financial health shows improvements in cash flow and debt reduction, revenue guidance was lowered, indicating strategic shifts away from low-margin sales. The Q&A section highlighted uncertainties in hardware resale and tariff impacts, with management avoiding some direct answers. Positive elements include a focus on high-margin recurring revenue and international growth. Given the market cap, the stock is likely to remain stable with minor fluctuations, resulting in a neutral sentiment.
