NYSE$FNF

Fidelity National Financial Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported diluted EPS from continuing operations of $1.09 and adjusted diluted EPS from continuing operations of $1.09.

Fidelity National Financial reported a strong second quarter, benefiting from high refinance volumes. The acquisition of FGL Holdings was completed on June 1, 2020, diversifying earnings and reducing volatility. Adjusted pre-tax title earnings and margin were the best since Q3 2003.

  • Total revenue reached approximately $2.4 billion, compared to $2.1 billion in Q2 2019.
  • Net earnings from continuing operations were $304 million, with adjusted net earnings at $305 million.
  • Diluted EPS from continuing operations was $1.09, matching the adjusted diluted EPS.
  • Refinance orders opened increased by 111% and refinance orders closed increased by 158% compared to Q2 2019.

Headline financials

Total Revenue

$2.42B

Previous: $2.14B+12.9%
EPS (adj)

$1.09

Previous: $0.92+18.5%
Adjusted Pre-Tax Title Margin

18.4%

Previous: 17.7%+4.0%
Commercial Revenue

$184M

Previous: $286M-35.7%
Free Cash Flow

$309M

Previous: $266M+16.2%
Net Income

$309M

Previous: $266M+16.2%
Operating Income

$1.23B

Previous: $972M+26.0%
Gross Profit

$2.39B

Previous: $2.08B+14.9%
Cash & Equivalents

$2.35B

Previous: $1.61B+46.6%
Total Assets

$48B

Previous: $10.2B+371.1%
Stock-Based Comp

$10M

Previous: $9M+11.1%

Revenue & EPS history

Fidelity National Financial · Revenue · Quarterly

$2.42B

Q2 2020+12.9%vs Q2 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Fidelity National Financial · $2.3B total across 2 segments · Q2 2020

  • Title Segment
    $2.22B
  • Corporate and Other
    $72M

Forward guidance

The company is focused on managing expenses and monitoring order volumes in light of the ongoing pandemic, while maintaining expense discipline. They are committed to maximizing shareholder value through dividends, business growth, and opportunistic share buybacks.

Tailwinds

  • Strong refinance volumes compared to the 2019 comparable period.
  • Adjusted pre-tax title earnings and margin were the best since Q3 2003.
  • Operational capabilities have ensured security and productivity even with remote work.
  • F&G had strong sales in the period, gaining market share while maintaining pricing discipline.
  • F&G launched into the independent broker dealer channel in June.

Headwinds

  • Ongoing COVID-19 pandemic.
  • Commercial revenue declined by 36% due to decrease in closed orders.
  • Purchase orders opened decreased 20% on a daily basis.
  • Purchase orders closed decreased 24% on a daily basis.
  • F&G reported a net loss attributable to common shareholders of $39 million.

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

-0.2%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+0.9%

Avg return

30 days after

51%

35 / 68 earnings

Positive

+5.8%

Q2 2018

Best reaction

-7.2%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.9%-7.2%-7.6%
Q4 2025-3.8%-5.0%-20.2%
Q3 2025+4.6%+7.2%+6.5%
Q1 2025-7.2%-10.9%-14.9%
Q4 2024+3.3%+6.8%+10.4%
Q3 2024-0.6%+1.2%+4.2%
Q2 2024-2.6%+0.2%+7.8%
Q1 2024+0.9%-1.4%-5.6%
Q4 2023-4.1%-5.1%-1.0%
Q3 2023+3.8%+5.1%+12.0%
Q2 2023+2.2%+5.6%+7.8%
Q1 2023-4.1%-1.3%+1.2%
Q4 2022-5.8%-5.5%-20.6%
Q3 2022-2.3%+7.3%-2.2%
Q2 2022-3.6%-2.2%-0.4%
Q1 2022-1.6%+1.2%+1.1%
Q4 2021-2.7%+2.1%+7.9%
Q3 2021-0.5%+3.7%+5.1%
Q2 2021+2.1%+6.1%+9.8%
Q1 2021+0.8%+0.6%+2.8%
Q4 2020-5.3%-2.8%+0.5%
Q3 2020+2.5%+2.1%+14.1%
Q2 2020+3.2%+7.4%+0.5%
Q1 2020+4.0%+8.0%+10.4%
Q4 2019+0.7%-0.6%-23.7%
Q3 2019+1.9%+3.4%+6.3%
Q2 2019+2.9%+2.8%+4.9%
Q1 2019+2.2%+0.8%-0.0%
Q4 2018-1.3%-3.4%-2.6%
Q3 2018-6.0%-5.6%-5.4%
Q2 2018+5.8%+7.8%+6.0%
Q1 2018+2.2%+1.3%+1.2%
Q4 2017-2.7%-5.3%-4.1%
Q3 2017+2.9%+4.9%+14.5%
Q2 2017+0.0%+2.9%+3.3%
Q1 2017+2.1%+2.1%+7.9%
Q4 2016+1.5%+3.3%+7.2%
Q3 2016-5.2%-5.2%-11.4%
Q2 2016+1.9%+3.7%+0.2%
Q1 2016-2.2%
Q4 2015+3.8%
Q3 2015+1.3%
Q2 2015+0.8%
Q1 2015+0.9%
Q4 2014-2.7%
Q3 2014-0.8%
Q2 2014+1.1%
Q1 2014+1.5%
Q4 2013+2.6%
Q3 2013-0.5%
Q2 2013-1.7%
Q1 2013-5.5%
Q4 2012-1.3%
Q3 2012+3.3%
Q2 2012-1.8%
Q1 2012+0.1%
Q4 2011+0.5%
Q3 2011+1.8%
Q2 2011+3.3%
Q1 2011+1.8%
Q4 2008-2.7%
Q4 2010-2.7%
Q3 2009+0.9%
Q3 2010+0.9%
Q4 2009-0.9%
Q2 2009-0.9%
Q2 2010-0.9%
Q1 2010-2.2%

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