Earnings Coverage - Radian

LONDON, November 19, 2014 /PRNewswire/ --

Investor-Edge.com has issued free earnings coverage on Radian Group Inc. (NYSE: RDN). On October 30, 2014, the company announced its financial results for Q3 FY14 (period ended September 30, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on Radian Group Inc. (Radian). For Q3 FY14, the company's total revenue grew $64.7 million on a Y-o-Y basis. Radian also reported net income of $153.6 million as compared to a net loss of $12.7 million in Q3 FY13. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview 

During Q3 FY14, Radian's total revenues increased to $309.3 million from $244.6 million in Q3 FY13. The company's total revenues exceeded Bloomberg analysts' forecasts of $274.5 million. For Q3 FY14, the company saw revenues of $227.2 million on its net premiums earned - insurance compared to $212.0 million in Q3 FY13, while the company's services segment generated revenues of $42.2 million in the reported quarter. The free research on RDN can be downloaded as in PDF format at:

www.Investor-Edge.com/RDNFreeReport

The company's adjusted pretax operating income for Q3 FY14 stood at $147.2 million compared to an adjusted pretax operating loss of $12.4 million in Q3 FY13, consisting of a loss of $3.2 million from the mortgage insurance segment and a loss of $9.2 million from the financial guaranty segment. Adjusted pretax operating income for the reported quarter included income from the company's mortgage insurance segment, financial guaranty segment, and mortgage and real estate services segment, of $132.6 million, $9.3 million, and $5.3 million, respectively.

S.A. Ibrahim, CEO of Radian, stated that the company delivered excellent results in Q3 FY14 driven by the strong credit performance of its businesses combined with the positive top-line impact of its growing mortgage insurance book. He added that the company's results included solid performance from Clayton, which begins to illustrate the benefit of Radian's diversification strategy. Sign up and read the free analyst's notes on RDN at:

www.Investor-Edge.com/RDN-19112014

For Q3 FY14, Radian reported other operating expenses of $56.3 million, including $8.7 million of Clayton operating expenses and $2.1 million of long-term compensation expenses. This compares to other operating expenses of $71.0 million in Q3 FY13, which included $28.1 million of long-term compensation expenses. The company's total expenses narrowed to $156.0 million in Q3 FY14 from $253.4 million in Q3 FY13. Radian reported net income of $0.67 per diluted share compared to a net loss of $0.07 per diluted share in Q3 FY13. Analysts from Bloomberg were anticipating the company to report earnings of $0.34 per share.

For Q3 FY14, Radian's new mortgage insurance written (NIW) stood at $11.2 billion compared to $13.7 billion in Q3 FY13. As of September 30, 2014, the company's total primary mortgage insurance in force stood at $169.2 billion compared to $158.6 billion as of September 30, 2013. The company's mortgage insurance provision for losses decreased to $48.9 million in Q3 FY14 from $149.7 million in Q3 FY13. Further, Radian's loss ratio for the reported quarter decreased to 22.5% from 74.8% in Q3 FY13.

Radian's total number of primary delinquent loans declined 4% QoQ and 28% YoY. Its primary mortgage insurance delinquency rate was down to 5.4% in Q3 FY14 compared to 5.8% in Q2 FY14, and 7.8% in Q3 FY13.

Stock Performance  

On the day of the earnings release, October 30, 2014, Radian's stock rallied 5.16%, ending the session at $16.29. The stock has mostly witnessed a positive momentum since then. On the last close, Tuesday, November 18, 2014, it finished at $16.93, 1.20% above its previous day's closing price of $16.73, after vacillating between $16.69 and $17.08. A total of 2.29 million shares were traded, which was below its three months average volume of 2.54 million shares. Over the last one month and over the previous three months, the company's shares have gained 9.79% and 18.39%, respectively. Further, the stock has surged 19.90% since the start of this year. Shares in Radian closed above their 50-day and 200-day moving averages of $15.20 and $14.71, respectively. Furthermore, the stock traded at a PE ratio of 9.23 and has a Relative Strength Index (RSI) of 66.36. Visit Investor-Edge and access the latest research on RDN at:

www.Investor-Edge.com/RDNEarningsCoverage

Sneak Peek to Corporate Insider Trading 

In the last one month Radian Group Inc. has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on RDN is available at:

www.Investor-Edge.com/RDNInsiderTrading

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