Title insurance provider Stewart Information Services (NYSE: STC) will be announcing earnings results this Wednesday after market close. Here’s what investors should know.
Stewart Information Services beat analysts’ revenue expectations last quarter, reporting revenues of $795.5 million, up 19.7% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.
Is Stewart Information Services a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Stewart Information Services’s revenue to grow 22% year on year, improving from the 10.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Stewart Information Services has a history of exceeding Wall Street’s expectations.
Looking at Stewart Information Services’s peers in the insurance segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Progressive delivered year-on-year revenue growth of 8.7%, meeting analysts’ expectations, and Travelers reported flat revenue, falling short of estimates by 3.6%. Progressive traded up 3.5% following the results while Travelers’s stock price was unchanged.
Read our full analysis of Progressive’s results here and Travelers’s results here.
There has been positive sentiment among investors in the insurance segment, with share prices up 6.9% on average over the last month. Stewart Information Services is up 13.1% during the same time and is heading into earnings with an average analyst price target of $80 (compared to the current share price of $66.92).
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