NYSE$FNF

Fidelity National Financial Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Fidelity National Financial reported strong Q4 2019 results, with diluted EPS of $1.22 and adjusted diluted EPS of $0.95.

Fidelity National Financial reported Q4 2019 total revenue of approximately $2.4 billion, net earnings of $340 million, and diluted EPS of $1.22. The adjusted pre-tax title margin was 16.3%.

  • Total revenue was approximately $2.4 billion, compared to $1.7 billion in Q4 2018.
  • Net earnings were $340 million and adjusted net earnings were $263 million, compared to $44 million and $175 million in Q4 2018, respectively.
  • Diluted EPS was $1.22 and adjusted diluted EPS was $0.95, compared to $0.16 and $0.63 in Q4 2018, respectively.
  • Adjusted pre-tax title earnings were $355 million and an adjusted pre-tax title margin of 16.3%.

Headline financials

Total Revenue

$2.36B

Previous: $1.69B+39.5%
EPS (adj)

$0.95

Previous: $0.63+50.8%
Adjusted Pre-Tax Title Margin

16.3%

Previous: 14.2%+14.8%
Commercial Revenue

$321M

Previous: $328M-2.1%
Net Income

$340M

Previous: $44M+672.7%
Operating Income

$439M

No prior period
Gross Profit

$6.79B

Previous: $5.79B+17.2%
Cash & Equivalents

$5.76B

Previous: $1.26B+358.2%
Total Assets

$10.7B

Previous: $9.3B+14.8%
Stock-Based Comp

$11M

Previous: $9M+22.2%

Revenue & EPS history

Fidelity National Financial · Revenue · Quarterly

$2.36B

Q4 2019+39.5%vs Q4 2018
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Fidelity National Financial · $2.36B total across 2 segments · Q4 2019

  • Title Segment
    $2.31B
  • Corporate and Other
    $52M

Forward guidance

FNF anticipates mortgage originations to moderate in 2020 and will manage expenses accordingly. The company plans to diversify earnings through the acquisition of FGL Holdings.

Tailwinds

  • FNF will remain vigilant on expenses as they manage the expected slowdown in volumes.
  • Expanding into the annuity market through the acquisition of FGL Holdings would best maximize value for shareholders.
  • F&G offers an attractive return on capital investment.
  • F&G is in an industry with strong secular growth tailwinds.
  • The Board will continue to evaluate capital allocation including share repurchases, dividends, debt paydown and further investments in our business segments.

Headwinds

  • Mortgage originations are expected to moderate through the year from the very strong levels enjoyed in 2019.
  • Refinance volumes are expected to naturally ease.
  • Economic environments may be more challenging for title insurance.
  • The company faces risks and uncertainties related to the F&G transaction, including the ability to consummate the transaction and integrate operations.
  • Changes in general economic, business and political conditions could impact results.

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

-0.2%

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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro