NYSE$ESNT

Essent Group · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Essent Group reported strong financial results for Q4 2019, marked by an increase in net income and a Moody's upgrade of their financial strength rating.

Essent Group Ltd. reported a net income of $147.0 million, or $1.49 per diluted share, for the quarter ended December 31, 2019, compared to $128.5 million, or $1.31 per diluted share, for the quarter ended December 31, 2018. The company's Board of Directors declared a quarterly cash dividend of $0.16 per common share.

  • Insurance in force as of December 31, 2019, was $164.0 billion, compared to $137.7 billion as of December 31, 2018.
  • New insurance written for the fourth quarter was $15.8 billion, compared to $11.4 billion in the fourth quarter of 2018.
  • Net premiums earned for the fourth quarter were $207.7 million, compared to $173.3 million in the fourth quarter of 2018.
  • The expense ratio for the fourth quarter was 19.9%, compared to 22.8% in the fourth quarter of 2018.

Headline financials

Total Revenue

$229M

Previous: $193M+18.5%
EPS (adj)

$1.49

Previous: $1.31+13.7%
New Insurance Written

$15.8B

No prior period
Insurance in Force

$164B

No prior period
Provision for Losses and LAE

$10.9M

No prior period
Expense Ratio

19.9%

Previous: 22.8%-12.7%
Combined Ratio

25.1%

Previous: 22.2%+13.1%
Capital Expenditures

$1.11M

Previous: $1.11M+0.1%
Free Cash Flow

$164M

Previous: $138M+18.7%
Net Income

$147M

Previous: $129M+14.3%
Operating Income

$174M

No prior period
Gross Profit

$702M

Previous: $568M+23.5%
Cash & Equivalents

$71.4M

Previous: $64.9M+9.9%
Total Assets

$3.87B

Previous: $3.15B+23.0%
Stock-Based Comp

$4.1M

Previous: $3.8M+7.7%

Revenue & EPS history

Essent · Revenue · Quarterly

$229M

Q4 2019+18.5%vs Q4 2018
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Forward guidance

Essent management expressed optimism about the company's future prospects, citing a favorable operating environment and strong credit performance. However, they also acknowledged potential risks and uncertainties that could impact their expectations.

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 Q4 2019

Historical avgQ4 2019

+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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