NYSE$FNF

Fidelity National Financial Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported diluted EPS from continuing operations of $1.39 and adjusted diluted EPS from continuing operations of $1.48.

Fidelity National Financial reported strong Q3 2020 results, with total revenue of approximately $3.0 billion. The company's adjusted pre-tax title earnings reached a record $528 million, and the adjusted pre-tax title margin was 21.2%, the best since Q3 2003. F&G's entrance into the bank and broker dealer channel has surpassed expectations, contributing to strong sales results.

  • Total revenue of approximately $3.0 billion versus $2.2 billion in the third quarter of 2019.
  • Net earnings from continuing operations of $406 million and adjusted net earnings from continuing operations of $435 million.
  • Diluted EPS from continuing operations of $1.39 and adjusted diluted EPS from continuing operations of $1.48.
  • Total commercial revenue of $216 million, a 28% decline versus total commercial revenue in the third quarter of 2019.

Headline financials

Total Revenue

$2.98B

Previous: $2.24B+32.8%
EPS (adj)

$1.48

Previous: $1.10+34.5%
Adjusted Pre-Tax Title Margin

21.2%

Previous: 18.6%+14.0%
Commercial Revenue

$216M

Previous: $301M-28.2%
Free Cash Flow

$378M

Previous: $250M+51.2%
Net Income

$378M

Previous: $250M+51.2%
Operating Income

$1.53B

Previous: $917M+66.7%
Gross Profit

$2.94B

Previous: $2.17B+35.3%
Cash & Equivalents

$2.87B

Previous: $1.53B+87.6%
Total Assets

$49.9B

Previous: $10.4B+378.8%
Stock-Based Comp

$10M

Previous: $9M+11.1%

Revenue & EPS history

Fidelity National Financial · Revenue · Quarterly

$2.98B

Q3 2020+32.8%vs Q3 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Fidelity National Financial · $2.53B total across 2 segments · Q3 2020

  • Title Segment
    $2.48B
  • Corporate and Other
    $50M

Forward guidance

FNF is focused on consistent dividend growth, growing its business, and targeting $500 million of share repurchases over the next twelve months.

Tailwinds

  • Sequential improvement every month in closed orders per day
  • Generated adjusted pre-tax title earnings of $528 million, a record quarter
  • Adjusted pre-tax title margin of 21.2%, our best quarterly margin since the third quarter of 2003
  • Refinance opened and closed orders on a daily basis increased 83% and 87%, respectively
  • F&G team continues to execute against its growth strategy, producing strong sales results in the third quarter

Headwinds

  • Commercial revenue declined 28% compared to the prior year
  • Decline in total commercial fee per file
  • Weakness or adverse changes in the level of real estate activity
  • Potential inability to find suitable acquisition candidates
  • Dependence on distributions from title insurance underwriters as a main source of cash flow

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 Q3 2020

Historical avgQ3 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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