What to expect from Essent Group’s (ESNT) Q3 earnings
Mortgage insurance provider Essent Group (NYSE:ESNT) will be reporting results this Friday morning. Here’s what to look for.
Essent Group beat analysts’ revenue expectations last quarter, reporting revenues of $362.7 million, up 13.6% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates.
Is Essent Group 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 Essent Group’s revenue to grow 13.2% year on year, a reversal from the 1.5% decrease 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 will stay the course heading into earnings. Essent Group has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Essent Group’s peers in the property & casualty insurance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Palomar Holdings delivered year-on-year revenue growth of 58%, beating analysts’ expectations by 8.4%, and Assurant reported revenues up 9.7%, topping estimates by 2.4%. Assurant traded up 4.2% following the results.
Read our full analysis of Palomar Holdings’s results here and Assurant’s results here.
There has been positive sentiment among investors in the property & casualty insurance segment, with share prices up 8.2% on average over the last month. Essent Group is up 12% during the same time and is heading into earnings with an average analyst price target of $72.13 (compared to the current share price of $69.35).
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