NYSE$ESNT

Essent Group · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Essent's financial performance was impacted by the COVID-19 pandemic on its insured portfolio.

Essent Group Ltd. reported a net income of $15.4 million, or $0.15 per diluted share, for the quarter ended June 30, 2020. The results reflect the initial impact of the COVID-19 pandemic on the insured portfolio.

  • Insurance in force as of June 30, 2020 was $174.6 billion.
  • New insurance written for the second quarter was $28.2 billion.
  • Net premiums earned for the second quarter were $211.5 million.
  • The expense ratio for the second quarter was 18.4%.

Headline financials

Total Revenue

$236M

Previous: $212M+11.4%
EPS (adj)

$0.15

Previous: $1.39-89.2%
New Insurance Written

$28.2B

No prior period
Insurance in Force

$175B

No prior period
Expense Ratio

18.4%

Previous: 22.0%-16.4%
Combined Ratio

101.5%

Previous: 24.7%+310.9%
Capital Expenditures

-$934K

Previous: -$1.78M+47.4%
Free Cash Flow

$14.4M

Previous: $135M-89.3%
Net Income

$15.4M

Previous: $136M-88.7%
Operating Income

$232M

Previous: $208M+11.5%
Gross Profit

$236M

Previous: $212M+11.4%
Cash & Equivalents

$72.8M

Previous: $25.3M+188.2%
Total Assets

$4.9B

Previous: $3.54B+38.4%
Stock-Based Comp

$4.57M

Previous: $4.22M+8.2%

Revenue & EPS history

Essent · Revenue · Quarterly

$236M

Q2 2020+11.4%vs Q2 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

The company did not provide specific forward guidance but expressed caution regarding the timing and shape of an economic recovery.

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 Q2 2020

Historical avgQ2 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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