Essent Group (ESNT) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. Since a cha ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks. Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental ...

F 1 1 II guvendemir Thesis Essent Group Ltd. (NYSE:ESNT) recently dropped its Q2 2024 results, and they look solid: they reported GAAP earnings per share (EPS) of $1.91, which beat estimates by $0.22, and revenue came in at $312.94 million, exceeding projections by $4.61 million. In my analysis, I argue that despite headwinds, Essent Group's smart risk management and strong dividend policy make them a solid play in the mortgage insurance space. About Essent Group Ltd. is a Bermuda-based holding company in h ...

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common Shares, $0.015 par value ESNT New York Stock Exchange UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the period ended June 30, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission ...

Financial Data and Key Metrics Changes - For Q2 2024, the company reported net income of $204 million, up from $172 million a year ago, with diluted earnings per share increasing to $1.91 from $1.61 [5][10] - The annualized return on average equity was 15% for the quarter [5] - The US mortgage insurance in force was $241 billion, a 2% increase from the previous year [5][10] - The annualized investment yield for Q2 was 3.8%, up from 3.5% a year ago [9][11] Business Line Data and Key Metrics Changes - The core mortgage insurance business maintained a persistency rate of approximately 87%, relatively flat compared to the previous quarter [5][10] - Net premiums earned for Q2 were $252 million, including $17.7 million from Essent Re and $16.6 million from Title operations [10][11] - The weighted average FICO for the insurance in force was 746, with a weighted average original LTV of 93% [6] Market Data and Key Metrics Changes - The default rate on the US mortgage insurance portfolio was 1.71%, down from 1.72% at the end of Q1 2024 [11] - The company noted that favorable demographics continue to drive housing demand, while supply remains constrained [4] Company Strategy and Development Direction - The company is focused on activating new lenders and enhancing its proprietary credit engine, EssentEDGE, to improve underwriting standards [6][7] - The Title business is viewed as a long-term investment, currently in the Control phase, with expectations for future profitability [7][44] - The company aims to maintain a programmatic and diversified reinsurance strategy to manage mortgage credit risk [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the housing market, citing a supply-demand imbalance that supports home prices [4] - The company is well-positioned for various economic scenarios due to its strong balance sheet and operating model [4][16] - Management acknowledged challenges in affordability due to higher rates and prices but remains optimistic about the overall economic environment [4] Other Important Information - The company closed a $500 million senior notes offering and upsized its revolving credit facility to $500 million, enhancing financial flexibility [8][13] - The statutory capital for the combined US mortgage insurance business was $3.5 billion, with a risk-to-capital ratio of 9.9 to 1 [14] Q&A Session Summary Question: Cumulative cure rates and future expectations - Management expects the cumulative cure rate of approximately 90% to remain stable despite macroeconomic conditions [17][18] Question: Industry pricing and loss ratios - Management indicated that the industry has moved away from a strict 20% through-cycle loss ratio, with current pricing reflecting better credit quality and risk management tools [19][20] Question: Impact of unemployment on claims - Management noted that while a rise in unemployment to 5% may increase default rates, the company is well-prepared for moderate losses [25][26] Question: Title business development - Management emphasized a long-term view for the Title business, focusing on building infrastructure and technology to enhance efficiency [42][44] Question: Risk in 2023 and 2024 vintages - Management acknowledged elevated risk due to affordability challenges but believes pricing strategies will mitigate potential losses [36][37] Question: Coverage ratio and higher LTV loans - The increase in coverage ratio is attributed to higher LTV loans due to current market conditions [48][49]

ESSENT GROUP LTD. | NYSE: ESNT © 2024 Essent Group Ltd. All rights reserved. | essentgroup.com | 1 ESSENT GROUP LTD. INVESTOR PRESENTATION 2Q24 NYSE: ESNT August 2, 2024 Disclaimer This presentation may include "forward-looking statements" which are subject to known and unknown risks and uncertainties, many of which may be beyond our control. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "should," "expect," "plan," "anticipate," "beli ...

Essent Group (ESNT) came out with quarterly earnings of $1.91 per share, beating the Zacks Consensus Estimate of $1.68 per share. This compares to earnings of $1.61 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 13.69%. A quarter ago, it was expected that this mortgage insurance and reinsurance holding company would post earnings of $1.56 per share when it actually produced earnings of $1.70, delivering a surprise of 8.97%. ...

Exhibit 99.1 Essent Group Ltd. Announces Second Quarter 2024 Results and Declares Quarterly Dividend HAMILTON, Bermuda--(BUSINESS WIRE)--August 2, 2024--Essent Group Ltd. (NYSE: ESNT) today reported net income for the quarter ended June 30, 2024 of $203.6 million or $1.91 per diluted share, compared to $172.2 million or $1.61 per diluted share for the quarter ended June 30, 2023. Essent also announced today that its Board of Directors has declared a quarterly cash dividend of $0.28 per common share. The div ...

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. The stock might move higher if these key numbers top expectations in the upcoming earnings report, whi ...

Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time. The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term pr ...