Stewart Information Services Crushes Earnings Estimates
Stewart Information Services (NYS: STC) reported earnings on July 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Stewart Information Services beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share increased. GAAP earnings per share grew.
Gross margins grew, operating margins grew, net margins were steady.
Stewart Information Services notched revenue of $517.2 million. The one analyst polled by S&P Capital IQ expected sales of $460.7 million on the same basis. GAAP reported sales were 7.4% higher than the prior-year quarter's $481.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.09. The two earnings estimates compiled by S&P Capital IQ anticipated $0.69 per share. Non-GAAP EPS of $1.09 for Q2 were 3.8% higher than the prior-year quarter's $1.05 per share. GAAP EPS of $1.08 for Q2 were 5.9% higher than the prior-year quarter's $1.02 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 52.9%, 380 basis points better than the prior-year quarter. Operating margin was 9.6%, 330 basis points better than the prior-year quarter. Net margin was 5.2%, much about the same as the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $463.3 million. On the bottom line, the average EPS estimate is $0.75.
Next year's average estimate for revenue is $1.78 billion. The average EPS estimate is $2.29.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 165 members out of 186 rating the stock outperform, and 21 members rating it underperform. Among 81 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 77 give Stewart Information Services a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Stewart Information Services is buy, with an average price target of $31.00.
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The article Stewart Information Services Crushes Earnings Estimates originally appeared on Fool.com.
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