NYSE$RDN

Radian Group Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Radian reported net income of $152 million and EPS of $0.98 for Q2 2024.

Radian Group Inc. reported a strong second quarter with a net income of $152 million, or $0.98 per diluted share, compared to $146 million, or $0.91 per diluted share, for the same quarter last year. The company's return on equity was 13.6%.

  • Net income for the quarter ended June 30, 2024, was $152 million, or $0.98 per diluted share.
  • Return on equity was 13.6%.
  • Book value per share grew 12% year-over-year to $29.66.
  • Available Holding Company Liquidity increased to $1.2 billion.

Headline financials

Total Revenue

$321M

Previous: $290M+10.6%
EPS

$0.98

Previous: $0.91+7.7%
Book value per share

$29.66

Previous: $26.51+11.9%
Holding company liquidity

$1.2B

No prior period
Loss ratio

-0.8%

No prior period
Return on equity

13.6%

Previous: 14.1%-3.5%
New defaults

11.1K

No prior period
Free Cash Flow

$152M

Previous: $146M+4.0%
Net Income

$152M

Previous: $146M+4.0%
Operating Income

$215M

Previous: $166M+29.4%
Gross Profit

$312M

Previous: $274M+13.7%

Revenue & EPS history

Radian · Revenue · Quarterly

$321M

Q2 2024+10.6%vs Q2 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Radian · $289M total across 1 segment · Q3 2023

  • Mortgage Insurance
    $289M+2.7%

Forward guidance

Radian expects to cede 25% of NIW between July 1, 2024, and June 30, 2025, under the 2024 QSR Agreement.

Tailwinds

  • Radian Guaranty paid an ordinary dividend to Radian Group of $200 million in the second quarter of 2024.
  • Radian Guaranty’s Available Assets under PMIERs totaled approximately $6.0 billion, resulting in PMIERs excess Available Assets of $2.2 billion.
  • Radian Mortgage Capital brought to market its inaugural secondary market securitization, a prime jumbo transaction of $348.9 million in size.
  • Radian Group announced the redemption of its 2024 senior notes in the amount of $450 million, payable in September 2024.
  • The redemption will result in a corresponding $450 million reduction in holding company debt and reduce Radian Group’s financial leverage.

Headwinds

  • The health of the U.S. housing market generally and changes in economic conditions that impact the size of the insurable mortgage market, the credit performance of our insured mortgage portfolio and our business prospects, including changes resulting from inflationary pressures, the higher interest rate environment and the risk of higher unemployment rates, as well as other macroeconomic stresses and uncertainties, including potential impacts resulting from political and geopolitical events
  • Changes in the way customers, investors, ratings agencies, regulators or legislators perceive our performance, financial strength and future prospects
  • Radian Guaranty’s ability to remain eligible under the PMIERs to insure loans purchased by the GSEs
  • Our ability to maintain an adequate level of capital in our insurance subsidiaries to satisfy current and future regulatory requirements
  • Changes in the charters or business practices of, or rules or regulations imposed by or applicable to, the GSEs or loans purchased by the GSEs, or changes in the requirements for Radian Guaranty to remain an approved insurer to the GSEs, such as changes in the PMIERs or the GSEs’ interpretation and application of the PMIERs or other applicable requirements

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 2024

Historical avgQ2 2024

+0.0%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+0.8%

Avg return

30 days after

48%

31 / 65 earnings

Positive

+19.2%

Q2 2011

Best reaction

-18.8%

Q3 2010

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.0%-2.6%-10.2%
Q4 2025+1.6%+6.3%+0.5%
Q3 2025-0.7%+3.0%+1.2%
Q1 2025+1.9%+5.1%+6.9%
Q4 2024-1.8%-4.8%-6.3%
Q3 2024+4.6%+5.8%+7.0%
Q2 2024-4.2%-8.7%-2.7%
Q1 2024+2.9%+4.8%+4.6%
Q4 2023-4.5%-2.1%+3.2%
Q3 2023+4.6%+6.6%+1.9%
Q2 2023+2.0%+4.0%+1.1%
Q1 2023+2.1%+5.9%+11.3%
Q4 2022-1.7%-1.1%-5.4%
Q3 2022-1.7%-0.8%-8.8%
Q2 2022+0.8%+0.0%-5.6%
Q1 2022+3.9%+0.1%-1.2%
Q4 2021+2.1%+2.4%-2.4%
Q3 2021-7.6%-6.8%-14.0%
Q2 2021-2.1%+2.5%+4.3%
Q1 2021-4.8%-4.5%-7.3%
Q4 2020-1.2%-1.0%+6.9%
Q3 2020-5.1%-2.6%+5.7%
Q2 2020+3.8%+4.7%+5.1%
Q1 2020+8.8%+6.0%+31.4%
Q4 2019-1.1%-3.0%-11.7%
Q3 2019+1.0%+1.0%+4.0%
Q2 2019-3.4%-7.0%-3.8%
Q1 2019+1.6%+2.4%-3.7%
Q4 2018-1.2%+1.3%+2.9%
Q3 2018+5.3%+3.8%+0.3%
Q2 2018+4.8%+8.2%+15.0%
Q1 2018-0.6%+3.5%+7.6%
Q4 2017+1.7%-2.0%-6.3%
Q3 2017+4.4%+3.3%+3.0%
Q2 2017+1.5%+0.9%+0.5%
Q1 2017-12.7%-14.3%-14.4%
Q4 2016-1.7%-0.3%+1.0%
Q3 2016-4.5%-7.8%+1.3%
Q2 2016+4.6%+1.5%+10.3%
Q1 2016+3.8%
Q4 2015+3.1%
Q3 2015-11.5%
Q2 2015-1.0%
Q1 2015-2.7%
Q4 2014-3.6%
Q3 2014+8.8%
Q2 2014+5.3%
Q1 2014+3.7%
Q4 2013+6.1%
Q3 2013-10.5%
Q2 2013+1.7%
Q1 2013-0.5%
Q4 2012+2.7%
Q3 2012+14.7%
Q2 2012+4.7%
Q1 2012+0.0%
Q4 2011-1.9%
Q4 2009-1.9%
Q3 2011-18.8%
Q3 2010-18.8%
Q2 2011+19.2%
Q2 2010-0.2%
Q1 2010-0.2%
Q4 2010-0.2%
Q1 2011-0.2%

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