Looks like they beat estimates by 16 cents, which makes the weakness of the stock everytime it was hammered when mortgage rates jumped all the more silly. Remember the thesis behind the title insurers is homes exchange hands - 30 year rates dont need to be at 5.2% for that to happen. Each foreclosure handed off to a vulture is a new title exchange... but again, see paragraph one: the market can't be argued with.
In full disclosure while stock after stock we own has been dancing to the heavens - at this point with almost every stock in the universe going up as HAL9000 does his thing, I cannot tell anymore which stocks are going up on merit and which are going up on actual solid business metrics. Our companies seem to be doing well on the business side, but countless companies who are not doing well but "beating expectations" are also surging. Therefore, there appears little value to these things we call fundamentals but I'll still type about them for entertainment purposes.
- Net income attributable to shareholders of the Santa Ana, California-based company rose to $70.3 million, or 75 cents per share, from $19.6 million, or 21 cents, a year earlier. Excluding investment losses, profit was 89 cents per share, the company said. Revenue fell 9 percent to $1.54 billion, while expenses fell 15 percent.
- Analysts on average had expected a profit of 73 cents per share on revenue of $1.57 billion, according to Reuters Estimates.
- Revenue from title insurance and related services dropped 16 percent to $935.3 million as the average fee per order fell, though the number of title orders closed grew by 9 percent.
- Title insurance guarantees that property owners have title to property and can legally transfer that title. Many lenders require that buyers have the insurance before extending loans.
- The company's direct operations closed 438,100 title orders for the second quarter of 2009, an increase of 9 percent, when compared with 401,200 title orders closed in the second quarter of 2008. Average revenue per direct title order was $1,302, an 18 percent decline relative to the second quarter of 2008.