NYSE$ESNT

Essent Group · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Essent reported strong financial results despite facing a challenging business environment due to COVID-19.

Essent Group Ltd. reported a net income of $149.5 million, or $1.52 per diluted share, for the quarter ended March 31, 2020, compared to $127.7 million, or $1.30 per diluted share, for the quarter ended March 31, 2019. The company's Board of Directors has declared a quarterly cash dividend of $0.16 per common share.

  • Insurance in force as of March 31, 2020, was $165.6 billion, compared to $164.0 billion as of December 31, 2019.
  • New insurance written for the first quarter was $13.5 billion, compared to $15.8 billion in the fourth quarter of 2019.
  • Net premiums earned for the first quarter were $206.5 million, compared to $207.7 million in the fourth quarter of 2019.
  • The combined ratio for the first quarter was 24.2%, compared to 25.1% in the fourth quarter of 2019.

Headline financials

Total Revenue

$229M

Previous: $201M+14.1%
EPS (adj)

$1.52

Previous: $1.30+16.9%
New Insurance Written

$13.5B

No prior period
Insurance in Force

$166B

No prior period
Expense Ratio

20.3%

Previous: 23.1%-12.1%
Combined Ratio

24.2%

Previous: 27.1%-10.7%
Capital Expenditures

-$466K

Previous: -$1.01M+53.9%
Free Cash Flow

$149M

Previous: $127M+17.6%
Net Income

$150M

Previous: $128M+17.1%
Operating Income

$224M

Previous: $196M+14.1%
Gross Profit

$229M

Previous: $201M+14.1%
Cash & Equivalents

$31.1M

Previous: $40.5M-23.3%
Total Assets

$4.19B

Previous: $3.35B+24.9%
Stock-Based Comp

$4.78M

Previous: $4.1M+16.6%

Revenue & EPS history

Essent · Revenue · Quarterly

$229M

Q1 2020+14.1%vs Q1 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

Essent is focused on facing a challenging business environment as a result of COVID-19, believing its operating model, strong balance sheet, capital, and liquidity will allow it to navigate these times effectively.

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 2020

Historical avgQ1 2020

+0.9%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+1.3%

Avg return

30 days after

65%

32 / 49 earnings

Positive

+7.2%

Q2 2014

Best reaction

-9.8%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.1%-2.7%-6.8%
Q4 2025-6.4%-6.7%-11.5%
Q3 2025+0.6%+1.2%+1.8%
Q1 2025-0.4%-0.4%-1.5%
Q4 2024-2.6%+0.3%-4.3%
Q3 2024-9.8%-6.0%-3.7%
Q2 2024-4.4%-4.2%+5.0%
Q1 2024+2.7%+3.2%+4.5%
Q4 2023+0.3%-1.3%+2.0%
Q3 2023+2.7%+1.8%+2.6%
Q2 2023+4.1%+3.0%-0.7%
Q1 2023+5.0%+6.3%+12.6%
Q4 2022+2.5%+3.1%-6.1%
Q3 2022+0.9%-2.4%+3.5%
Q2 2022+0.2%+0.4%-8.8%
Q1 2022-0.7%-2.3%+2.1%
Q4 2021-0.5%+2.3%-10.5%
Q3 2021+1.6%-0.2%-9.8%
Q2 2021+2.4%+3.6%+1.3%
Q1 2021-2.5%-6.8%-4.1%
Q4 2020-0.2%-0.3%+0.3%
Q3 2020+5.2%+3.1%+9.4%
Q2 2020+4.0%+3.7%+3.7%
Q1 2020-1.2%-11.5%+30.4%
Q4 2019-5.1%-9.0%-27.6%
Q3 2019+1.3%+2.8%+2.4%
Q2 2019-1.2%+1.3%+6.9%
Q1 2019+1.7%-2.4%-2.0%
Q4 2018+0.8%+4.7%+3.8%
Q3 2018-3.0%-3.5%-13.3%
Q2 2018+5.3%+7.3%+13.4%
Q1 2018+5.5%+4.1%+2.6%
Q4 2017+3.1%+9.4%+9.8%
Q3 2017-0.5%+1.3%+11.4%
Q2 2017+5.9%+1.7%+1.6%
Q1 2017-5.4%-0.2%-0.5%
Q4 2016+1.7%+0.4%-3.1%
Q3 2016+4.8%+8.5%+20.9%
Q2 2016+6.9%+10.5%+11.8%
Q1 2016+4.8%
Q4 2015+1.4%
Q3 2015+2.4%
Q2 2015-5.7%
Q1 2015+3.0%
Q4 2014+0.6%
Q3 2014+0.2%
Q2 2014+7.2%
Q1 2014+3.8%
Q4 2013-2.4%
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012

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