Fannie Mae, Freddie Mac shares tumble after conservatorship comments
Investing.com -- Stewart Information Services (NASDAQ:III) Corporation (NYSE:STC) reported second quarter revenue that significantly exceeded analyst expectations, driving shares up 6.9% despite an earnings miss. The title insurance and real estate services provider posted revenue of $722.2 million for the quarter, substantially above the consensus estimate of $671.9 million.
The company reported adjusted earnings per share of $1.34 for the second quarter, falling short of analyst expectations of $1.23. Revenue increased 19.9% compared to $602.2 million in the same quarter last year, showing strong growth across business segments.
Stewart’s title segment led the growth with operating revenues increasing 19% to $592.5 million, while domestic commercial revenues surged 46% compared to the prior year quarter. The real estate solutions segment also performed well, with operating revenues rising 22% to $112.7 million.
"I am pleased with our performance this quarter as our top line results demonstrate our progress in growing each of our business lines," said Fred Eppinger, chief executive officer. "We have also been thoughtful in our operational management and were able to deliver solid bottom-line results for the second quarter."
The company’s pretax margin improved to 6.5% from 4.8% in the same quarter last year, while adjusted pretax margin rose to 7.6% from 6.6%. Domestic commercial fee per file increased 25% to $16,900, reflecting larger transaction sizes and a 17% increase in commercial closed transactions.
Despite ongoing challenges in the housing market, Stewart’s focus on operational efficiency and business growth across segments appears to be resonating with investors, as reflected in the significant stock price increase following the earnings announcement.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.