ESNT Q2 Beats

Investment Analysis Clubs Saul’s Investing Discussions
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Essent Group beats 2Q profit forecasts

Associated Press August 4, 2016Comment
HAMILTON, Bermuda (AP) _ Essent Group Ltd. (ESNT) on Thursday reported second-quarter net income of $52.3 million.

On a per-share basis, the Hamilton, Bermuda-based company said it had net income of 57 cents.

The results exceeded Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 54 cents per share.

The mortgage insurance and reinsurance holding company posted revenue of $108.2 million in the period.

Essent Group shares have increased nearly 9 percent since the beginning of the year. The stock has fallen 19 percent in the last 12 months.

JT

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Hi JT,

Another strong quarter for ESNT. Earnings up 39% YoY and revenue up 29%. Combined ratio down to 34.1%. These results are looking tasty to me, and market reaction has been good, though measured (up 3%). I was expecting a bigger pop with a beat, but hey, I’m not complaining. Here are updated tables:


Qtr		1st	2nd	3rd	4th

Earnings					
2013					.22
2014		.18	.23	.29	.33
2015		.38	.41	.44	.48	
2016		.52	.57

YoY Earnings Growth					
2014					50%
2015		111%	78%	52%	45%
2016		 37%	39%

Revenue					
2013					42
2014		48	54	65	73
2015		80	84	92	97
2016		103	108

YoY Revenue Growth					
2014					74%
2015		67%	56%	42%	33%	
2016		29%	29%

Combined Ratio (percent)
2013		73.8	58.7	54.1	57.0
2014		54.4	48.9	42.9	42.3
2015		39.3	37.6	38.4	37.8
2016		37.2	34.1

Current 1YPEG = 0.29

I need to plug the new numbers into the evaluation metrics I’m using, but I didn’t see any surprises in my initial review.

Check out the bar charts in the presentation found here:

http://ir.essentgroup.com/investors/webcasts-and-presentatio…

I like the trends :slight_smile:

DT

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