NYSE$RDN

Radian Group Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Radian's Q4 2021 earnings were announced, with net income of $193.4 million and diluted earnings per share of $1.07.

Radian Group Inc. reported a net income of $193.4 million, or $1.07 per diluted share, for the quarter ended December 31, 2021. This is compared to a net income of $148.0 million, or $0.76 per diluted share, for the quarter ended December 31, 2020.

  • The company reported fourth quarter GAAP net income of $193 million, or $1.07 per diluted share.
  • MI New Insurance Written (NIW) reached $92 billion for 2021.
  • Homegenius revenues increased 45% in 2021, totaling $149 million.
  • Provision for losses in Q4 2021 was $(46.2) million, favorably impacted by positive development on prior period defaults.

Headline financials

Total Revenue

$261M

Previous: $302M-13.5%
EPS (adj)

$1.07

Previous: $0.69+55.1%
Book value per share

$24.28

Previous: $22.36+8.6%
Loss ratio

-18.6%

Previous: 19.6%-194.9%
Expense ratio

25.6%

Previous: 21.1%+21.3%
Net Income

$193M

Previous: $148M+30.7%
Operating Income

$247M

Previous: $179M+37.6%
Gross Profit

$680M

Previous: $1.16B-41.2%
Cash & Equivalents

$151M

Previous: $87.9M+71.9%
Total Assets

$7.84B

Previous: $7.95B-1.4%

Revenue & EPS history

Radian · Revenue · Quarterly

$261M

Q4 2021-13.5%vs Q4 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

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

  • Mortgage Insurance
    $289M+2.7%

Forward guidance

Radian increased their quarterly dividend and announced a new share repurchase authorization, demonstrating confidence in their financial position and capital flexibility.

Tailwinds

  • Increased quarterly dividend by 43% from $0.14 to $0.20 per share.
  • Authorized a new $400 million share repurchase program expiring in February 2024.
  • Plan to utilize a value-based Rule 10b5-1 plan to execute the share repurchase authorization.
  • Strategic capital actions are based on the company's strong financial position.
  • The company's team is focused on Radian's mission of ensuring affordable, sustainable and equitable homeownership.

Headwinds

  • The COVID-19 pandemic has created periods of significant economic disruption.
  • 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
  • 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
  • Uncertainty from the upcoming discontinuance of LIBOR and transition to one or more alternative benchmarks that could cause interest rate volatility and, among other things, impact our investment portfolio, cost of debt and cost of reinsurance through mortgage insurance-linked notes transactions

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 2021

Historical avgQ4 2021

+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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