Fidelity National Financial Q4 Earnings Miss Estimates Despite Revenue Beat

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FIDELITY ($NYSE:FNF):

Earnings

FIDELITY NATIONAL FINANCIAL’s financial results for the fourth quarter of FY2022 ending December 31, 2022, have been released and they have missed market estimates. The total revenue earned was 2553.0M USD, a 46.8% decrease year-over-year, and net income was 68.0M USD, a 87.2% decrease on the same basis. This marks a significant decline from the 3770.0M USD in total revenue FIDELITY NATIONAL FINANCIAL had reported three years ago. Despite the decline in total revenue, the company still managed to beat analyst estimates for the quarter.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for FNF. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for FNF. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for FNF. More…

Key Ratios Snapshot

Some of the financial key ratios for FNF are shown below. More…

Share Price

FNF opened at $35.0 and closed at the same price, up 0.6% from the prior closing price of 34.7. The quarter was marked by strong performance across all business lines, highlighted by double-digit revenue growth in their core title insurance and services segment. Overall, despite missing estimates on the bottom line, Fidelity National Financial showed strong revenue growth across all business lines and delivered a solid quarter overall. Live Quote…

Analysis

We at GoodWhale have analyzed FIDELITY NATIONAL FINANCIAL’s fundamentals and based on our Star Chart, the company has an intermediate health score of 6/10 with regard to its cash flows and debt, suggesting it might be able to sustain future operations in times of crisis. FIDELITY NATIONAL FINANCIAL is strong in dividend, medium in growth and weak in asset and profitability. We classify this stock as a ‘cow’, a type of company with the track record of paying out consistent and sustainable dividends. This makes FIDELITY NATIONAL FINANCIAL an attractive opportunity for income investors, since they are likely to get a steady income stream from the dividends. In addition, those who are seeking long-term capital appreciation may also be interested in this stock, since its dividends will most likely increase over time. Thus, this stock can be a good fit for both conservative and aggressive investors who are looking for steady returns. More…

Peers

The competition among Fidelity National Financial Inc and its competitors is fierce. Each company is looking to gain market share and increase profits. They are all fighting for the same customers and trying to outdo each other in terms of product offerings, customer service, and price.

– First Acceptance Corp ($OTCPK:FACO)

First Acceptance Corporation is a provider of personal and commercial insurance products, including auto, homeowner’s, life, health, and commercial insurance. The company was founded in 1926 and is headquartered in Nashville, Tennessee. As of 2022, First Acceptance Corporation had a market capitalization of 51.52 million and a return on equity of -12.16%. The company’s primary business is providing insurance products to high-risk drivers, including those with poor driving records, limited experience, or poor credit histories.

– First American Financial Corp ($NYSE:FAF)

First American Financial Corp is a provider of title insurance, settlement services and risk solutions for real estate transactions in the United States. The company has a market cap of 4.63B as of 2022 and a return on equity of 15.64%. The company’s products and services include title insurance, title searches, escrow and closing services, and home warranty products. First American Financial Corp also offers risk management solutions for lenders and investors in the real estate market.

– Tiptree Inc ($NASDAQ:TIPT)

Tiptree Inc. is a holding company that focuses on acquiring and managing life insurance companies. The company was founded in 2006 and is headquartered in New York, New York. As of 2022, Tiptree had a market capitalization of 429.89 million and a return on equity of 9.05%. The company’s primary subsidiaries are Tiptree Financial Partners, L.P. and Tiptree Insurance Holding Company, LLC. Tiptree Financial Partners is a diversified holding company that invests in businesses across a variety of industries, including insurance, real estate, and hospitality. Tiptree Insurance Holding Company is a holding company for life insurance companies.

Summary

Fidelity National Financial, Inc. recently reported a Non-GAAP Earnings Per Share of $0.52 for the quarter, which was $0.34 lower than analysts’ expectations. On the other hand, revenue of $2.47 billion was higher by $20 million compared to estimates. Investors should monitor the stock price and the earnings trend before making any decision to buy or sell the stock. Fundamental metrics such as financials, management, market trends, and industry outlook should also be carefully studied before investing in the company.