Stewart Information Services Misses Quarterly Earnings Target
Stewart Information Services posted quarterly earnings of $1.33 per share, missing the $1.50 estimate. Revenue was $900.70 million, just under the $903.67 million analysts expected. The company raised its quarterly dividend to $0.55 per share and reported a 4.12% net margin.
Stewart Information Services, an insurance provider trading as STC, reported Wednesday that quarterly EPS came in at $1.33, $0.17 below the consensus $1.50. Revenue was $900.70 million, slightly under the $903.67 million analysts expected. The company also disclosed a 4.12% net margin and 10.02% return on equity.
The firm raised its quarterly dividend to $0.55 from $0.5250, equal to $2.20 annually and a 4.2% yield. Its payout ratio is 48.25%. Shares rose 0.6% to $52.72, still below the 52-week high of $78.61, while analysts maintained a Moderate Buy rating and $80.25 average target.
The earnings miss and modest revenue shortfall may matter most to shareholders and retirement funds holding STC, while the higher dividend could support income-focused investors. Because Stewart operates in insurance, its results may also be watched by customers and business partners as a signal of pricing and service conditions, though one quarter is unlikely to determine broad social effects.