NYSE$STC

Stewart Information Services Corporation · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Stewart's Q4 2021 results were reported, showing increased operating revenues and net income compared to the prior year quarter.

Stewart Information Services Corporation reported Q4 2021 results with operating revenues of $951.4 million, a 31% increase year-over-year. Net income was $85.5 million, compared to $59.7 million in the prior year quarter, and diluted EPS was $3.12, up from $2.22 in the prior year quarter. The company highlighted improvements in purchase, commercial, and agency activity offsetting declining refinancing volumes.

  • Operating revenues increased by 31% to $951.4 million compared to the prior year quarter.
  • Net income rose to $85.5 million, up from $59.7 million in the same quarter of the previous year.
  • Diluted EPS increased to $3.12, compared to $2.22 in the prior year quarter.
  • The company saw improvements in purchase, commercial, and agency activity, which compensated for reduced refinancing volumes.

Headline financials

Total Revenue

$962M

Previous: $737M+30.5%
EPS (adj)

$2.94

Previous: $2.09+40.7%
Net Income

$85.5M

Previous: $59.7M+43.2%
Operating Income

$114M

Previous: $83.9M+36.0%
Gross Profit

$2.68B

Previous: $1.91B+40.0%
Cash & Equivalents

$486M

Previous: $433M+12.3%
Total Assets

$2.81B

Previous: $1.98B+42.2%
Stock-Based Comp

$3.47M

Previous: $1.52M+128.9%

Revenue & EPS history

Stewart · Revenue · Quarterly

$962M

Q4 2021+30.5%vs Q4 2020
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Stewart · $868M total across 1 segment · Q4 2021

  • Title Segment
    $868M

Forward guidance

While the past quarter reflects the start of a broader market shift away from some of the interest rate-driven order activity of the past couple of years, Stewart sees opportunity in a market that is more heavily weighted to residential home buying and improving commercial activity and Stewart's goal has always been to build a stable and resilient business that can thrive through the full real estate cycle

Tailwinds

  • Opportunity in residential home buying market
  • Opportunity in improving commercial activity
  • Goal to build a stable and resilient business
  • Ability to thrive through the full real estate cycle
  • Continued focus on operational discipline

Headwinds

  • Market shift away from interest rate-driven order activity
  • Declining refinancing volumes
  • Volatility of economic conditions
  • Adverse changes in the level of real estate activity
  • Changes in mortgage interest rates

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

+0.6%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+0.9%

Avg return

30 days after

57%

37 / 65 earnings

Positive

+15.5%

Q3 2014

Best reaction

-13.5%

Q2 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.9%+4.4%-1.0%
Q4 2025+2.9%+4.4%-2.7%
Q3 2025-4.4%-4.6%-0.9%
Q2 2025-1.2%-1.5%+3.9%
Q1 2025-1.9%-2.3%-9.0%
Q4 2024+3.9%+3.4%+4.8%
Q3 2024+5.1%+2.3%+9.8%
Q2 2024-2.0%-4.2%-1.0%
Q1 2024-3.1%-0.8%+1.4%
Q4 2023-1.3%+3.5%+1.2%
Q3 2023+7.8%+8.6%+16.1%
Q2 2023+1.8%+1.9%-3.9%
Q1 2023+3.1%+4.2%+12.5%
Q4 2022-12.1%-8.1%-22.1%
Q3 2022-6.7%-9.2%+1.6%
Q2 2022+4.1%+5.6%+3.1%
Q1 2022+1.2%+1.2%+9.9%
Q4 2021-4.2%-8.8%-10.8%
Q3 2021-1.3%+0.2%+7.0%
Q2 2021+2.6%+5.3%+6.7%
Q1 2021+1.5%+5.5%+7.8%
Q4 2020+3.1%+4.8%+5.6%
Q3 2020-7.4%-3.3%-2.0%
Q2 2020+4.2%+14.9%+14.1%
Q1 2020+5.4%+7.5%+8.3%
Q4 2019-3.3%-6.6%-10.3%
Q3 2019+2.7%+5.2%+9.4%
Q2 2019-0.8%+1.2%-8.1%
Q1 2019-2.8%-3.0%-2.3%
Q4 2018-1.3%-1.2%-2.2%
Q3 2018-1.6%+0.2%+0.0%
Q2 2018+3.3%+2.4%+2.4%
Q1 2018-0.2%-0.3%+2.6%
Q4 2017-6.2%-4.9%-5.5%
Q3 2017+1.3%+3.4%+5.4%
Q2 2017-13.5%-14.1%-21.2%
Q1 2017+1.5%+4.6%-2.0%
Q4 2016+0.8%+2.5%-1.9%
Q3 2016-2.7%+2.0%+1.4%
Q2 2016+2.0%+1.0%+7.5%
Q1 2016+1.9%
Q4 2015+3.8%
Q3 2015-0.0%
Q2 2015+1.9%
Q1 2015-3.5%
Q4 2014+2.3%
Q3 2014+15.5%
Q2 2014-0.2%
Q1 2014+2.5%
Q4 2013+10.7%
Q3 2013+2.2%
Q2 2013+0.8%
Q1 2013+1.8%
Q2 2012+3.4%
Q4 2012+3.4%
Q3 2012+1.7%
Q1 2012-1.1%
Q4 2011+3.9%
Q2 2011+3.9%
Q3 2011+1.2%
Q4 2010-2.5%
Q1 2011-0.1%
Q3 2010-0.9%
Q2 2010+8.1%
Q1 2010-4.4%

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