Radian Q2 Revenue Soars 93% to $575M, Crushing Estimates
RDN sits 17% above its 52-week low of $31.5.
Summary
Radian Group delivered a standout Q2, with revenue surging 93% year-over-year to $575 million, well above the $537.2 million consensus. Adjusted operating income of $196 million also beat estimates. The specialty insurance segment, now 53% of net premiums earned, drove the top line, while mortgage insurance in force hit a record $284 billion and new insurance written rose 14%. The company returned $113 million to shareholders via buybacks and dividends and expects $650 million in ordinary dividends from its Radian Guaranty subsidiary this year. Management plans to repay remaining revolver borrowings and pursue divestitures to sharpen focus on insurance. The results follow the Inigo acquisition and CEO transition announced earlier this year, with the incoming CEO having made a $5.77 million open-market purchase in June. The strong quarter and capital actions reinforce the transformation narrative.
At the time of this announcement, RDN was trading at $36.98 on NYSE in the Finance sector, with a market capitalization of approximately $5.2B. The 52-week trading range was $31.50 to $41.05. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.