Barclays Maintains an 'Equalweight' on Fidelity National (FNF); Backlog Building for 4Q
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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 $17.00.
Barclays analyst says, "FNF reported 3Q11 GAAP EPS of $0.33, but after adding back a $14MM charge in the personal lines business related to Hurricane Irene and $6.1MM of realized losses, core EPS were closer to $0.40. While this was below our $0.45 estimate, it was above the consensus of $0.37. Operating earnings came in below our expectations mainly due to a drop in the ratio of agency premiums to direct, which has trended lower as FNF has improved its agent splits and pruned less profitable agent relationships. Opened orders increased significantly starting in August, and remain strong in early October, which should benefit 4Q11 results, along with the $154MM pre-tax gain from the sale of the flood insurance business."
"While the strong pipeline promises to deliver much better earnings than we would traditionally see in the seasonally slow 4Q, despite the additional leg down in mortgage rates that occurred in late September when the Fed announced Operation Twist, new orders opened are showing signs of slowing in October. This slowing is coming sooner than we anticipated, so we are lowering our 4Q11 and FY2012 estimates to $0.80 and $1.30 from $1.00 and $1.45, respectively."
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 $14.98 yesterday.
Barclays analyst says, "FNF reported 3Q11 GAAP EPS of $0.33, but after adding back a $14MM charge in the personal lines business related to Hurricane Irene and $6.1MM of realized losses, core EPS were closer to $0.40. While this was below our $0.45 estimate, it was above the consensus of $0.37. Operating earnings came in below our expectations mainly due to a drop in the ratio of agency premiums to direct, which has trended lower as FNF has improved its agent splits and pruned less profitable agent relationships. Opened orders increased significantly starting in August, and remain strong in early October, which should benefit 4Q11 results, along with the $154MM pre-tax gain from the sale of the flood insurance business."
"While the strong pipeline promises to deliver much better earnings than we would traditionally see in the seasonally slow 4Q, despite the additional leg down in mortgage rates that occurred in late September when the Fed announced Operation Twist, new orders opened are showing signs of slowing in October. This slowing is coming sooner than we anticipated, so we are lowering our 4Q11 and FY2012 estimates to $0.80 and $1.30 from $1.00 and $1.45, respectively."
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 $14.98 yesterday.
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