Examining the Future: Essent Group's Earnings Outlook
Essent Group (NYSE:ESNT) is preparing to release its quarterly earnings on Friday, 2025-05-09. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Essent Group to report an earnings per share (EPS) of $1.73.
Anticipation surrounds Essent Group's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Earnings Track Record
In the previous earnings release, the company missed EPS by $0.07, leading to a 0.0% drop in the share price the following trading session.
Here's a look at Essent Group's past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.65 | 1.73 | 1.68 | 1.59 |
| EPS Actual | 1.58 | 1.65 | 1.91 | 1.70 |
| Price Change % | -3.0% | -10.0% | -2.0% | 0.0% |
Performance of Essent Group Shares
Shares of Essent Group were trading at $58.39 as of May 07. Over the last 52-week period, shares are up 3.47%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Insights Shared by Analysts on Essent Group
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Essent Group.
Essent Group has received a total of 4 ratings from analysts, with the consensus rating as Outperform. With an average one-year price target of $65.75, the consensus suggests a potential 12.6% upside.
Analyzing Ratings Among Peers
This comparison focuses on the analyst ratings and average 1-year price targets of Mr. Cooper Gr, Walker & Dunlop and Onity Group, three major players in the industry, shedding light on their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Mr. Cooper Gr, with an average 1-year price target of $134.12, suggesting a potential 129.7% upside.
- Analysts currently favor an Outperform trajectory for Walker & Dunlop, with an average 1-year price target of $101.67, suggesting a potential 74.12% upside.
- Analysts currently favor an Outperform trajectory for Onity Group, with an average 1-year price target of $50.0, suggesting a potential 14.37% downside.
Analysis Summary for Peers
The peer analysis summary provides a snapshot of key metrics for Mr. Cooper Gr, Walker & Dunlop and Onity Group, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| PennyMac Financial Servs | Outperform | 113.95% | $687.05M | 1.97% |
| Mr. Cooper Gr | Neutral | 3.74% | $343M | 1.81% |
| Walker & Dunlop | Outperform | -30.48% | $156.35M | 0.16% |
| Onity Group | Outperform | 7.56% | $138.60M | 4.67% |
Key Takeaway:
Essent Group ranks at the top for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, Essent Group is at the bottom compared to its peers.
Discovering Essent Group: A Closer Look
Essent Group Ltd serves the housing finance industry by providing private mortgage insurance, reinsurance, risk management products, title insurance, and settlement services to mortgage lenders, borrowers, and investors to support homeownership. It provides credit protection to lenders and mortgage investors by covering a portion of the unpaid principal balance of a mortgage and certain related expenses in the event of a default. By providing capital to mitigate mortgage credit risk, the company allows lenders to make additional mortgage financing available to prospective homeowners.
Essent Group: Financial Performance Dissected
Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.
Revenue Growth: Essent Group's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 6.49%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.
Net Margin: Essent Group's net margin excels beyond industry benchmarks, reaching 49.49%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Essent Group's ROE excels beyond industry benchmarks, reaching 2.99%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Essent Group's ROA excels beyond industry benchmarks, reaching 2.36%. This signifies efficient management of assets and strong financial health.
Debt Management: Essent Group's debt-to-equity ratio is below the industry average at 0.09, reflecting a lower dependency on debt financing and a more conservative financial approach.
To track all earnings releases for Essent Group visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.