What does Fidelity National (FNF) have in store for third quarter results?


Fidelity National Financial, Inc. FNF is expected to release its third quarter 2021 results on November 2, after market closes. The company made a surprise profit of 48.20% in the last published quarter.

Factors to note

As the largest title insurance and settlement services company in the country, Fidelity National boasts the largest market share in the home buying, refinancing and trading markets. Its extensive market presence is expected to have contributed to its performance during the quarter.

The company should have benefited from strong origination demand and a continued rebound in commercial real estate activity in a still low interest rate environment.

Higher order volumes probably contributed to its sales performance.

Premiums are expected to have increased due to higher direct premiums, agency premiums as well as escrow, title and other fees.

At F&G, the company probably recorded higher sales and benefited from attractive spreads despite the low interest rate environment.

Zacks’ consensus estimate for earnings per share is set at $ 1.74, indicating a 17.6% increase from the figure released a year ago. The consensus estimate of revenue is set at $ 3.4 billion, up 12.9% from the figure released a year ago.

Expenses have likely increased due to higher personnel costs and other expenses.

However, investments in technology, operations and automation are likely to have helped the margin.

Quantitative model prediction

Our proven model does not conclusively predict an increase in profits for Fidelity National this time around. The stock needs to have the right combination of a positive ESP on earnings and a Zacks # 1 (strong buy), 2 (buy), or 3 (hold) rating for this to happen. This is not the case as you can see below.

ESP on earnings: It has an ESP on earnings of 0.00%. This is because Zacks’ Consensus Estimate and the Most Accurate Estimate are both set at $ 1.74. You can discover the best stocks to buy or sell before they are flagged with our ESP Earnings Filter.

Fidelity National Financial, Inc.BPA Price and Surprise

Fidelity National Financial, Inc. price-eps-surprise | Quote from Fidelity National Financial, Inc.

Zack Rank: Fidelity National currently carries a Zacks Rank # 2 (Buy). You can see The full list of today’s Zacks # 1 Rank stocks here.

Actions to consider

Some insurance industry stocks that have the perfect mix of elements to beat earnings estimates in upcoming quarterly releases include:

Cigna Corporation CI has a revenue ESP of + 2.19% and a rank 3 of Zacks.

MetLife MET has a +1.20% income ESP and a Zacks # 3 rank.

Aflac Incorporated The AFL has an ESP on profits of + 1.97% and a Zacks Rank # 2.

Technological IPOs with huge profit potential: Last year, major IPOs jumped 299% in the first two months. With record amounts of cash flowing in IPOs and a record stock market, this year could be even more lucrative.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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