The mortgage insurer posted earnings of 19 cents a share for the fourth quarter, while analysts surveyed by Thomson Reuters expected Radian to break even. In the year-ago quarter the company posted a loss of $1.34 a share. Revenue grew 20.2% to $271.6 million, compared to analyst estimates of $241.4 million.
The return to profitability and increased revenue was helped by a recovery in the U.S. housing market and fewer people defaulting on home loans.
In a statement CEO S.A. Ibrahim said "We expect that the size and credit quality of our MI (mortgage insurance) portfolio will fuel improved levels of operating profitability this year."
TheStreet Ratings team rates RADIAN GROUP INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate RADIAN GROUP INC (RDN) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Among the primary strengths of the company is its solid stock price performance. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: