NYSE$STC

Stewart Information Services Corporation · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Net income and diluted EPS decreased due to historically low transaction volumes.

Stewart Information Services Corporation reported a decrease in total revenues to $655.9 million, compared to $961.7 million in the prior year quarter. Net income attributable to Stewart was $13.3 million, or $0.49 per diluted share, compared to $85.5 million, or $3.12 per diluted share, for the fourth quarter 2021.

  • Total revenues were $655.9 million ($643.2 million on an adjusted basis), compared to $961.7 million in the prior year quarter.
  • Net income was $13.3 million ($16.3 million on an adjusted basis), compared to $85.5 million in the prior year quarter.
  • Diluted EPS was $0.49 ($0.60 on an adjusted basis), compared to $3.12 in the prior year quarter.
  • Results were impacted by historically low transaction volumes due to the current economic environment and its impact on the housing industry.

Headline financials

Total Revenue

$656M

Previous: $962M-31.8%
EPS (adj)

$0.60

Previous: $2.94-79.6%
Net Income

$13.3M

Previous: $85.5M-84.4%
Operating Income

$20.8M

Previous: $114M-81.8%
Gross Profit

$7.89M

Previous: $2.68B-99.7%
Cash & Equivalents

$248M

Previous: $486M-48.9%
Total Assets

$2.74B

Previous: $2.81B-2.7%
Stock-Based Comp

$3.04M

Previous: $3.47M-12.4%

Revenue & EPS history

Stewart · Revenue · Quarterly

$656M

Q4 2022-31.8%vs Q4 2021
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

Stewart · $653M total across 2 segments · Q4 2022

  • Title Segment
    $599M-31.0%
  • Real Estate Solutions Segment
    $54.7M

Forward guidance

No specific forward guidance provided, but the company expects to continue managing operations with cost discipline and investment in capabilities. They anticipate a positive impact on their business over the long term and plan to invest opportunistically to build a more resilient company.

Tailwinds

  • Continued management of operations during a challenging environment.
  • Reasonable balance of cost discipline.
  • Investment in capabilities expected to have a positive impact on the business over the long term.
  • Significant progress in becoming a stronger company.
  • Excitement about welcoming BCHH to the Stewart family.

Headwinds

  • Fourth quarter results were impacted by historically low transaction volumes.
  • The current economic environment has an impact on the housing industry.
  • Lower revenues in the fourth quarter 2022.
  • Decline in residential purchase and refinancing transactions.
  • Lower transaction volume and size in domestic commercial revenues.

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 2022

Historical avgQ4 2022

+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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