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Fidelity National (FNF) Q2 Earnings Top, Title Business Solid

Fidelity National Financial, Inc. 's FNF second-quarter 2018 adjusted earnings from continuing operations of 86 cents per share beat the Zacks Consensus Estimate by 3.6%. The bottom line also improved 34.4% year over year.

Fidelity National Financial, Inc. Price, Consensus and EPS Surprise

Fidelity National Financial, Inc. Price, Consensus and EPS Surprise | Fidelity National Financial, Inc. Quote

The second quarter marked remarkable results at the Title business, which generated pre-tax title earnings of $338 million and a 17.1% adjusted pre-tax title margin, registering the best quarterly performance on both metrics in 15 years.

The second quarter also witnessed single-digit growth in orders in both residential purchase and commercial markets, offsetting the double-digit decline in orders in the residential refinance market.

Behind the Headlines

Revenues of about $2.1 billion remained flat year over year. Improvement in Agency as well as Direct title premiums besides Escrow, title related and other fees as well as interest and investment income drove this year-over-year growth. Also, the top line marginally beat the Zacks Consensus Estimate by 0.1%.

Title segment revenues grew 5.3% year over year to $2 billion. Adjusted pretax earnings increased 9% year over year to $338 million. Total commercial revenues rose 6% year over year to $276 million. Average fee per file climbed 6% from the prior-year level.

Purchase orders opened and closed gained 3% and 2%, respectively, year over year.

Total expense for the second quarter came in at about $1.8 million, up 3.5% from $1.7 million in the year-ago period. Higher personnel cost, agent commissions and other operating expenses, depreciation and amortization plus claim loss expense were primarily responsible for the rise in expenses.

Financial Update

Net cash flows from operations totaled $331 million, up 15.3% from the year-ago quarter's count.

The company exited the second quarter with total assets worth $9.3 billion, up 1.1% from the figure at last year-end. Notes payable decreased 3.3% over the level at 2017 end.

Share Repurchase Update

The board of directors authorized the company to buy back 25 million shares over the next three years. The program is effective Aug 1, 2018.

Under its earlier three-year repurchase program, scheduled to expire on Jul 31, 2018, the company bought back 10.6 million shares.

Zacks Rank

Fidelity National has a Zacks Rank #4 (Sell).

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Peer Releases

The Progressive Corporation's PGR second-quarter bottom line beat estimates on the back of higher premiums in its last reported quarter.

Everest Re Group Ltd. RE is set to release second-quarter 2018 earnings on Jul 30 and the consensus mark for the same stands at $6.38 per share, representing year-over-year growth of 15.8%. The stock carries a Zacks Rank #2 (Buy).

First American Financial Corporation FAF is slated to release second-quarter 2018 earnings on Jul 26 and the Zacks Consensus Estimate for the same is pegged at $1.24 per share, reflecting a year-over-year rise of 26.5%. The stock has a Zacks Rank of 2.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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