With a yield of 3.1%, Fidelity National Financial (SYM: FNF) provides various insurance products in the United States. The company operates through Title, F&G (Fidelity & Guaranty Life), and Corporate. It offers title insurance, escrow, and other title related services, including trust activities, trustee sales guarantees, recordings and reconveyances, and home warranty products. And it’s the largest title insurance company in the U.S.
In addition, the company also announced a quarterly cash dividend of 50 cents per share, which is payable on March 31 to shareholders of record as of March 17. The company has now maintained dividend payments for the last 21 years.
Helping, analysts at Stephens just raised their price target on FNF to $75 from $68 with an overweight rating. The firm said Fidelity National delivered one of its strongest quarters, as compared to market expectations and the overall industry.
Analysts at Keefe Bruyette raised their price target to $65 from $63 with a market perform rating. Barclays analysts raised their price target to $67.
Plus, earnings were solid.
In its most recent quarter, the company’s EPS of $1.34 beat by 13 cents. Revenue of $3.62 billion up 5.5% year over year, beat by $290 million. Fourth quarter net earnings were $450 million, or $1.65 per share, as compared to its net loss of $69 million, or 25 cents per share year over year. Full year net earnings of $1.3 billion, or $4.65 per share was also greater than the $517 million, or $1.91 per share posted year over year.
Its Title Segment contributed $263 million and $877 million for the fourth quarter and full year 2024, respectively, compared to $174 million and $760 million for the fourth quarter and full year 2023, respectively.
The F&G Segment contributed $123 million and $475 million for the fourth quarter and full year 2024, respectively, compared to $64 million and $285 million for the fourth quarter and full year 2023, respectively.
In addition, according to Chairman William P. Foley, II, as quoted in a company earnings release:
“We delivered an industry leading adjusted pre-tax Title margin of 15.1% for the full year 2024 which is an outstanding result and validation of the operational efficiencies that our management team has achieved over the last decade. Our Title segment has significantly outperformed prior cycle troughs and is well positioned for the eventual upturn in the residential housing market once mortgage interest rates begin to normalize.”
“F&G’s business has continued to perform above our expectations having achieved record assets under management before flow reinsurance of $65.3 billion at year end driven by record gross sales of $15.3 billion. Given this strong growth, F&G contributed 38% of FNF’s consolidated adjusted net earnings for the full year 2024 as compared to 30% in 2023.”
In the end, we have to remember that the company just delivered one of its strongest quarters, as compared to market expectations and the overall industry. It also announced a quarterly cash dividend of 50 cents per share, which is payable on March 31 to shareholders of record as of March 17. Plus, analysts are increasingly bullish, including Stephens, which just raised their price target to $75 from $68 with an overweight rating.
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