Real estate service firm Stewart beats Q2 adjusted profit estimates
Overview
Stewart Q2 2025 revenue rises 20% yr/yr, beating analyst expectation, per LSEG data
Adjusted EPS of $1.34 for Q2 2025 beats estimates, per LSEG data
Net income for Q2 2025 increases to $31.9 mln from $17.3 mln
Outlook
Company notes housing market headwinds impacting future growth
Stewart aims to grow business lines despite market challenges
Result Drivers
TITLE SEGMENT GROWTH - Title segment operating revenues rose 19% to $592.5 mln, driven by increased revenues from direct and agency title operations
COMMERCIAL REVENUE SURGE - Domestic commercial revenues increased by 46% due to improved average transaction size and a 17% rise in closed transactions
COST MANAGEMENT - Combined employee costs and other operating expenses rose by 13% due to higher incentive compensation and increased employee count, while the percentage of operating revenues for these expenses improved to 47% from 50% in the prior year qtr
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $722.20 mln | $662.60 mln (1 Analyst) |
Q2 Adjusted EPS | Beat | $1.34 | $1.19 (2 Analysts) |
Q2 Net Income | $31.90 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "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 $72.00, about 17.8% above its July 22 closing price of $59.17
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 14 three months ago
Press Release:
