The Philadelphia-based mortgage insurance provider reported 2015 third quarter earnings yesterday before the market open. Radian reported adjusted earnings of 31 cents per share, missing consensus estimates of 36 cents per share.
Radian reported revenue of $297.29 million for the quarter, higher than estimates of $231.55 million.
JMP Securities lowered its 2015 earnings estimate to $1.36 from $1.50 per share due to Radian's miss in the quarter, more conservative loss ratio expectations and a higher estimated fourth quarter tax rate, the firm said.
"With the vast majority of Radian's business now in the better performing, post-2008 years, a decent macro backdrop going forward, and Radian continuing to add new customers (as it estimates that it currently doesn't do business with roughly 20% of the lender market), we think the company is well-positioned for success over the next few years," JMP Securities said.
Shares of Radian were down 1.17% to $14.31 in early afternoon trading on Wednesday.
Separately, TheStreet Ratings team rates RADIAN GROUP INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
We rate RADIAN GROUP INC (RDN) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: RDN