Stewart Information Q2 revenue beats, helped by data center transactions

Overview

• US real estate services firm's Q2 revenue rose 25% yr/yr, beating analyst expectations

• Adjusted EPS and net income for Q2 increased from prior year quarter

• Revenue growth driven by strong title and real estate solutions segments, including higher commercial transaction volume

Outlook

• Company did not provide specific guidance for the current or future quarters

Result Drivers

• COMMERCIAL TITLE GROWTH - Higher domestic commercial transaction volume and larger data center transactions drove a 20% increase in domestic commercial title revenues

• AGENCY TITLE REVENUE - Agency title revenues rose 25% on higher transaction volume, with net agency title revenues up 26%

• REAL ESTATE SOLUTIONS EXPANSION - Segment revenue jumped 75%, mainly due to the MCS acquisition and higher credit information and valuation services revenue

Company press release: ID:nPn3g6n0sa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the property casualty insurance peer group is "buy"

• Wall Street's median 12-month price target for Stewart Information Services Corp is $80.00, about 14.1% above its July 21 closing price of $70.13

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• July 21 - Equifax sees downbeat annual revenue amid tough mortgage market

• July 21 - D.R. Horton cuts annual revenue forecast as high costs dent margins

• July 22 - PulteGroup Q2 home sale revenue falls 11% on lower closing volume, prices

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)