Overview

* Radian Q3 revenue beats analyst expectations, adjusted EPS also exceeds estimates

* Company on track acquire Inigo for $1.7 bln, transforming into multi-line insurer

* Radian announces divestiture of Mortgage Conduit, Title, and Real Estate Services

Outlook

* Radian anticipates Inigo acquisition to double annual revenue

* Company sees mid-teens percentage accretion to EPS post-Inigo acquisition

Result Drivers

* MORTGAGE INSURANCE GROWTH - Primary mortgage insurance in force reached an all-time high of $281 bln, supporting revenue growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $303 mln $238.90

Revenue mln (2

Analysts

)

Q3 Beat $1.15 $1.01 (5

Adjusted Analysts

EPS )

Q3 Net $141 mln

Income

Q3 13.90%

Adjusted

ROE

Q3 $199 mln

Pretax

Profit

Q3 ROE 13.40%

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and 1 "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 Radian Group Inc ( RDN ) is $38.50, about 10.9% above its November 4 closing price of $34.31

* The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release:

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(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.)