Mortgage insurance provider Essent Group (NYSE:ESNT) will be reporting results this Friday before the bell. Here’s what to look for.
Essent Group beat analysts’ revenue expectations last quarter, reporting revenues of $336.1 million, up 5.8% year on year. It was a strong 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 3.6% year on year, improving from the 2% 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 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 Q2 results, giving us a hint as to what we can expect. Mercury General delivered year-on-year revenue growth of 13.8%, beating analysts’ expectations by 10.3%, and Trupanion reported revenues up 11.1%, topping estimates by 0.8%. Mercury General traded up 2.4% following the results.
Read our full analysis of Mercury General’s results here and Trupanion’s results here.
Investors in the property & casualty insurance segment have had steady hands going into earnings, with share prices up 1.1% on average over the last month. Essent Group is up 2% during the same time and is heading into earnings with an average analyst price target of $68.71 (compared to the current share price of $65.88).
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