Real estate service firm Stewart beats Q2 adjusted profit estimates

Stewart Information Services

23/07/2025 21:41

Overview

Stewart Q2 2025 revenue rises 20% yr/yr, beating analyst expectation, per LSEG data

Adjusted EPS of $1.34 for Q2 2025 beats estimates, per LSEG data

Net income for Q2 2025 increases to $31.9 mln from $17.3 mln

Outlook

Company notes housing market headwinds impacting future growth

Stewart aims to grow business lines despite market challenges

Result Drivers

TITLE SEGMENT GROWTH - Title segment operating revenues rose 19% to $592.5 mln, driven by increased revenues from direct and agency title operations

COMMERCIAL REVENUE SURGE - Domestic commercial revenues increased by 46% due to improved average transaction size and a 17% rise in closed transactions

COST MANAGEMENT - Combined employee costs and other operating expenses rose by 13% due to higher incentive compensation and increased employee count, while the percentage of operating revenues for these expenses improved to 47% from 50% in the prior year qtr

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$722.20 mln
$662.60 mln (1 Analyst)
Q2 Adjusted EPS
Beat
$1.34
$1.19 (2 Analysts)
Q2 Net Income
$31.90 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the property & casualty insurance peer group is "buy."

Wall Street's median 12-month price target for Stewart Information Services Corp is $72.00, about 17.8% above its July 22 closing price of $59.17

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nPn5ZLLrCa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)