NASDAQ$ITIC

Investors Title Co · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported record results due to low interest rates fueling refinance activity and strong housing demand.

Investors Title Company announced record results for Q1 2021, with net income of $13.8 million, or $7.29 per diluted share, compared to a net loss of $7.0 million, or $3.71 per diluted share, for the prior year period. Revenues increased 141.1% to $72.1 million, and net premiums written increased 59.2% to $61.5 million.

  • Net income was $13.8 million, or $7.29 per diluted share, compared to a net loss of $7.0 million, or $3.71 per diluted share, for the prior year period.
  • Total revenues increased 141.1% to $72.1 million, compared to $29.9 million in the prior year period.
  • Net premiums written increased 59.2% to $61.5 million.
  • Income before income taxes increased $25.8 million to $17.3 million.

Headline financials

Total Revenue

$72.1M

Previous: $29.9M+141.1%
EPS (adj)

$7.29

Previous: $2.58+182.6%
Capital Expenditures

-$1.61M

Previous: -$643K-150.9%
Free Cash Flow

$12.2M

Previous: -$7.65M+259.5%
Net Income

$13.8M

Previous: -$7.01M+297.2%
Operating Income

$36.1M

Previous: $5.57M+547.7%
Gross Profit

$70.5M

Previous: $29M+143.1%
Cash & Equivalents

$23M

Previous: $25.3M-9.3%
Total Assets

$296M

Previous: $254M+16.3%
Stock-Based Comp

$71K

Previous: $117K-39.3%

Revenue & EPS history

Investors Title · Revenue · Quarterly

$72.1M

Q1 2021+141.1%vs Q1 2020

Revenue by segment

Investors Title · $62.2M total across 6 segments · Q3 2023

  • Net premiums written
    $49.8M-25.3%
  • Escrow & title-related fees
    $4.68M-21.5%
  • Non-title services
    $4.64M+20.4%
  • Interest and dividends
    $2.31M
  • Other investment income
    $514K
  • Other revenue
    $257K

Forward guidance

The outlook for the real estate market for 2021 is drawing more into focus with expectations of economic growth fueled by federal stimulus, the rollout of the COVID-19 vaccine, and job growth increasing throughout the year.

Tailwinds

  • Economic growth is expected to increase throughout the year, fueled by federal stimulus.
  • The rollout of the COVID-19 vaccine is expected to contribute to economic growth.
  • Job growth is expected to increase throughout the year.
  • Mortgage interest rates are likely to remain low by historical standards.
  • Population demographics, residual demand attributable to supply shortages, and a growing economy will result in a strong housing market for 2021.

Headwinds

  • Refinance activity will almost certainly slow as rates nudge upward.
  • Changes in home purchase or refinance demand.
  • Activity and the mix thereof, interest rate changes.
  • The severity and duration of the COVID-19 pandemic (including any of its variants) and its effects (and the effects of measures undertaken to combat it) on the economy and the Company’s business.
  • The cyclical demand for title insurance due to changes in the residential and commercial real estate markets.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+1.7%

Avg return

Earnings day

+1.8%

Avg return

5 days after

+2.1%

Avg return

30 days after

58%

37 / 64 earnings

Positive

+12.5%

Q3 2024

Best reaction

-6.0%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.2%+0.6%+3.1%
Q4 2025+0.4%-17.5%-18.6%
Q3 2025+6.5%+4.6%-5.5%
Q1 2025+2.1%-4.0%-17.2%
Q4 2024+4.2%+4.1%+8.5%
Q3 2024+12.5%+9.9%+18.8%
Q2 2024+3.4%+5.0%+14.8%
Q1 2024-0.3%-1.6%+13.5%
Q4 2023-2.3%-5.5%-6.0%
Q3 2023+3.0%+0.6%+5.9%
Q2 2023+1.6%-0.5%-3.9%
Q1 2023-0.7%-0.6%-6.6%
Q4 2022-1.0%+1.4%-7.2%
Q3 2022+4.8%+2.8%+5.7%
Q2 2022+1.5%+0.9%-11.9%
Q1 2022-6.0%-13.3%-8.6%
Q4 2021+4.9%+1.2%+5.0%
Q3 2021+10.1%+12.0%-4.3%
Q2 2021+9.1%+11.7%+15.4%
Q1 2021+4.7%+5.4%+0.8%
Q4 2020-0.2%+0.9%+3.7%
Q3 2020+9.5%+7.5%+14.1%
Q2 2020+3.5%+6.8%+13.9%
Q1 2020+4.5%+2.6%+7.6%
Q4 2019+4.0%+9.7%-14.1%
Q3 2019-2.0%-0.1%+1.2%
Q2 2019-2.3%-2.4%-3.7%
Q1 2019-1.4%-1.5%-7.1%
Q4 2018-4.8%-4.6%-2.8%
Q3 2018+4.6%+5.4%+4.4%
Q2 2018+1.7%+1.6%+1.0%
Q1 2018-0.0%+0.2%-1.6%
Q4 2017+0.5%+2.9%+3.5%
Q3 2017-0.9%-1.6%+7.3%
Q2 2017+1.6%+2.2%+0.0%
Q1 2017+0.8%+8.9%+6.8%
Q4 2016+4.6%+5.7%+7.6%
Q3 2016+10.2%+10.2%+38.4%
Q2 2016-0.8%-1.3%+1.3%
Q1 2016-0.5%
Q4 2015+2.6%
Q3 2015+5.8%
Q2 2015+1.8%
Q1 2015-3.9%
Q4 2014+8.3%
Q3 2014-0.4%
Q2 2014-0.8%
Q1 2014-2.1%
Q4 2013-0.7%
Q3 2013+1.7%
Q2 2013-0.0%
Q1 2013+1.5%
Q4 2012-0.5%
Q3 2012+0.0%
Q2 2012+4.6%
Q1 2011-0.4%
Q1 2012+0.8%
Q4 2011-4.2%
Q3 2011+1.2%
Q3 2010+1.2%
Q2 2010+0.0%
Q2 2011+0.0%
Q4 2010+0.0%
Q1 2010+0.3%

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