Just before the holiday weekend, Stewart Information Services Corp. reported its year-end and fourth quarter 2011 earnings. The headline from the company was that it showed its
first annual profit since 2006. This week, analysts say the national underwriter exceeded their earnings expectations.
Two analysts polled by S&P Capital expected revenue of $378.4 million for the fourth quarter, but Stewart came in with $445.1 million. That marked the second quarter in a row Stewart beat S&P Capital IQ’s expectations.
The earnings per share (EPS) estimate came a bit closer. S&P Capital IQ anticipated $0.12 per share and Stewart’s GAAP EPS came in at $0.11 for Q4. However, that was 74 percent lower than the prior-year quarter’s mark of $0.43 per share.
Gross margin was 46 percent, which was 140 basis points off from the prior-year quarter. Stewart’s operating margin was 2.8 percent, which was 50 basis points off than the prior-year quarter. Net margin was 0.5 percent — 170 basis points off than the prior-year quarter.
Stewart’s full-year 2011 earnings report showed $2.3 million net earnings compared to a $12.6 million loss in 2010 — an improvement of $14.9 million. Pretax earnings before noncontrolling interests increased to $18 million while total revenues decreased 2.2 percent to $1.6 billion. Earnings per share for 2011 of $0.12 improved $0.81 from a $0.69 loss per share for 2010.
Next quarter's average estimate for revenue is $416.7 million.
Click here for a look at the full-year earnings report.