NYSE$FNF

Fidelity National Financial Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported diluted EPS from continuing operations of $1.90 and adjusted diluted EPS from continuing operations of $2.06.

Fidelity National Financial reported a strong second quarter in 2021, driven by record results in the Title business and F&G's sales. The company's financial model is designed to deliver earnings and cash flow through changing market environments. FNF's capital allocation strategy focuses on returning capital to shareholders while investing in businesses to drive growth.

  • Total revenue reached $3.9 billion, compared to $2.4 billion in Q2 2020.
  • Net earnings from continuing operations were $546 million, with adjusted net earnings at $592 million.
  • Diluted EPS from continuing operations was $1.90, and adjusted diluted EPS was $2.06.
  • Total commercial revenue reached a record $347 million, an 89% increase year-over-year.

Headline financials

Total Revenue

$3.85B

Previous: $2.42B+59.3%
EPS (adj)

$2.06

Previous: $1.09+89.0%
Adjusted Pre-Tax Title Margin

22.7%

Previous: 18.4%+23.4%
Commercial Revenue

$347M

Previous: $184M+88.6%
Free Cash Flow

$552M

Previous: $309M+78.6%
Net Income

$552M

Previous: $309M+78.6%
Operating Income

$2.24B

Previous: $1.23B+83.0%
Gross Profit

$3.85B

Previous: $2.39B+60.9%
Cash & Equivalents

$3.47B

Previous: $2.35B+47.5%
Total Assets

$54.5B

Previous: $48B+13.6%
Stock-Based Comp

$10M

Previous: $10M+0.0%

Revenue & EPS history

Fidelity National Financial · Revenue · Quarterly

$3.85B

Q2 2021+59.3%vs Q2 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Fidelity National Financial · $3.05B total across 2 segments · Q2 2021

  • Title Segment
    $3B+34.7%
  • Corporate and Other
    $56M-22.2%

Forward guidance

FNF is building a company that has a financial model designed to deliver earnings and cash flow through changing market environments. The company is focused on returning capital to shareholders, while making necessary investments in our businesses to drive growth.

Tailwinds

  • Record adjusted pre-tax title earnings of $688 million.
  • Adjusted pre-tax title margin of 22.7%.
  • Total commercial revenues reached record levels of $347 million.
  • Retail sales at F&G reached record levels.
  • Disciplined capital allocation strategy focused on returning capital to shareholders

Headwinds

  • Second quarter refinance orders opened decreased 25% on a daily basis versus the second quarter of 2020.
  • Second quarter refinance orders closed decreased 5% on a daily basis versus the second quarter of 2020.
  • Changes in general economic, business, political and COVID-19 conditions.
  • Weakness or adverse changes in the level of real estate activity.
  • Potential inability to find suitable acquisition candidates.

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 2021

Historical avgQ2 2021

-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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