Barclays Maintains an 'Equalweight' on Fidelity National (FNF); 2Q11 Earnings First Look
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Price: $47.44 -2.02%
Rating Summary:
9 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
9 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Barclays maintains an 'Equalweight' on Fidelity National (NYSE: FNF) price target of $15.00.
Barclays analyst says, "FNF reported 2Q11 GAAP EPS of $0.36 after the market close that was above both our estimate of $0.30 and the consensus estimate of $0.31. The beat relative to our expectations was due mainly to a higher-than-expected fee per file, which pushed title revenues 4% above our estimate even though closed orders came in 1% lower than we forecasted. Management indicated that the 5% increase in the fee per file resulted from strength in the commercial business where revenues were up 38% y-o-y. Expenses were 3.6% above our estimates, but that was all attributable to the bigger than expected top line, with much of the incremental expense coming from agent commissions."
"Despite a very challenging environment for residential title volumes, the resurgence in commercial volumes is providing a boost to the bottom line that is likely not fully reflected in consensus estimates, so we expect the shares could act well tomorrow on these results. The longer-term outlook for volumes remains challenged, however, so with the shares trading at 1x book and about 13x 2012 consensus, we view upside as limited absent a material change in that outlook."
For more ratings news on Fidelity National click here and for the rating history of Fidelity National click here.
Shares of Fidelity National closed at $15.76 yesterday.
Barclays analyst says, "FNF reported 2Q11 GAAP EPS of $0.36 after the market close that was above both our estimate of $0.30 and the consensus estimate of $0.31. The beat relative to our expectations was due mainly to a higher-than-expected fee per file, which pushed title revenues 4% above our estimate even though closed orders came in 1% lower than we forecasted. Management indicated that the 5% increase in the fee per file resulted from strength in the commercial business where revenues were up 38% y-o-y. Expenses were 3.6% above our estimates, but that was all attributable to the bigger than expected top line, with much of the incremental expense coming from agent commissions."
"Despite a very challenging environment for residential title volumes, the resurgence in commercial volumes is providing a boost to the bottom line that is likely not fully reflected in consensus estimates, so we expect the shares could act well tomorrow on these results. The longer-term outlook for volumes remains challenged, however, so with the shares trading at 1x book and about 13x 2012 consensus, we view upside as limited absent a material change in that outlook."
For more ratings news on Fidelity National click here and for the rating history of Fidelity National click here.
Shares of Fidelity National closed at $15.76 yesterday.
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