Essent Group LtdESNT
▲ PositiveCapitalrelevance
Q2 revenue and EPS beat estimates, though operating margin declined.
Impact on stocks 1
Financials
Essent Group LtdEssent Group reported second quarter revenue of $362.7 million, beating analyst estimates of $330.8 million and growing 13.6% year over year. Adjusted earnings per share came in at $2.08, exceeding the $1.76 consensus estimate. Operating margin declined to 63.5% from 72.4% a year earlier. CEO Mark Casale highlighted the company's Buy, Manage & Distribute model and said success is best measured by growth in book value per share. Analysts questioned management about premium yield stability, credit risk from VantageScore adoption, and faster growth in new insurance written versus the industry.
Essent Group LtdQ2 revenue and EPS beat estimates, though operating margin declined.