Stewart Q3 revenue slightly beats estimates on higher agency title, acquisition 

Overview

• US real estate services firm's Q3 revenue rose 13% yr/yr, slightly beating analyst expectations

• Adjusted EPS for Q3 declined yr/yr, reflecting increased industry headwinds and higher operating expenses

• Company attributed higher operating expenses to acquisitions and increased service costs

Outlook

• Company expects industry headwinds to persist into next year

• Stewart says it remains focused on growing market share amid challenging market conditions

Result Drivers

• AGENCY TITLE REVENUES - Co said Q3 title segment revenue growth was primarily driven by higher agency title revenues

• MCS ACQUISITION - Co said real estate solutions segment revenue growth was mainly due to the recent MCS acquisition and higher credit information and valuation services revenues

• HIGHER OPERATING EXPENSES - Co said operating expenses rose due to increased employee count from acquisitions and higher service costs

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "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 $75.00, about 43.1% above its October 20 closing price of $52.42

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• Oct 20 - Agree Realty Q3 net income per share up 18.5%; raises FY26 AFFO guidance

• Oct 21 - Getty Realty Q3 rental income rises 13.8% on acquisitions, lifts FY guidance

• Oct 20 - US pending home sales tumble to record low in September

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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.)