NYSE$FNF

Fidelity National Financial Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Fidelity National Financial reported a decrease in net earnings but highlighted solid title revenue and steady F&G segment gross sales.

Fidelity National Financial reported second quarter results with net earnings attributable to common shareholders of $219 million, or $0.81 per diluted share, compared to $537 million, or $1.92 per share, for the second quarter of 2022. Adjusted net earnings attributable to common shareholders for the second quarter were $274 million, or $1.01 per share, compared to $557 million, or $2.00 per share, for the second quarter of 2022.

  • Title Segment total revenue was $1.9 billion, a 27% decrease from the second quarter of 2022.
  • F&G Segment gross sales were $3.0 billion, a 3% decrease from the second quarter of 2022.
  • F&G Segment assets under management (AUM) reached a record $46.3 billion as of June 30, 2023.
  • FNF paid common dividends of $0.45 per share for $121 million in the second quarter.

Headline financials

Total Revenue

$3.07B

Previous: $2.63B+16.6%
EPS (adj)

$1.01

Previous: $1.90-46.8%
Adjusted Pre-Tax Title Margin

15.8%

Previous: 18.9%-16.4%
Commercial Revenue

$263M

No prior period
Free Cash Flow

$219M

Previous: $382M-42.7%
Net Income

$219M

Previous: $382M-42.7%
Operating Income

$1.72B

Previous: $1.01B+70.4%
Gross Profit

$2.89B

Previous: $2.63B+9.8%
Cash & Equivalents

$3.14B

Previous: $2.43B+29.3%
Total Assets

$73B

Previous: $61.2B+19.3%
Stock-Based Comp

$14M

Previous: $11M+27.3%

Revenue & EPS history

Fidelity National Financial · Revenue · Quarterly

$3.07B

Q2 2023+16.6%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Fidelity National Financial · $1.9B total across 1 segment · Q2 2023

  • Title Segment
    $1.9B-26.9%

Forward guidance

The company focuses on balance sheet strength and remains committed to its quarterly cash dividend while prudently moderating share repurchase activity.

Tailwinds

  • Long-term outlook for housing remains strong given household formation and underlying demographics in the U.S.
  • FNF ended the quarter with $885 million in cash and short-term liquid investments.
  • The company is positioned for an uncertain environment.
  • FNF remains committed to its quarterly cash dividend.
  • F&G's financial strength ratings upgrade to ‘A3’ by Moody’s is a strong validation of financial performance.

Headwinds

  • Near term continues to be uncertain given the high level of interest rates which could persist for longer than expected.
  • Moderated share repurchase activity in order to preserve financial flexibility.
  • Title revenue decreased due to decline in volumes as compared to the prior year given higher mortgage rates.
  • F&G Segment gross sales were down 3% compared to the second quarter of 2022.
  • Alternative investment returns below our long-term expectations by $0.17 per share.

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 2023

Historical avgQ2 2023

-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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