Radian Group Earnings: What Investors Should Watch

Radian Group (NYSE:RDN) will report earnings before markets open on Wednesday, July 24th. Radian Group Inc. provides financial guarantee insurance. The Company’s products and services enable homebuyers to purchase homes more quickly and with smaller down payments, protect lenders against loan default, and lower the costs of mortgage origination and servicing. Radian also provides insurance and reinsurance to investors in corporate, municipal, and asset-backed securities.

Here is your Cheat Sheet to Radian Group Earnings:

Earnings Expectations: Analysts expect earnings of $-0.05 per share on revenues of $204.35 million.

Analyst Trends:

Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.05 to a loss $0.07. For the current year, the average estimate is a loss of $1.01, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Radian Group has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 1,808 1,313 417 1,948 825
Diluted EPS ($) -5.12 -1.80 -15.74 2.26 -3.41

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 158.19 260.79 226.06 42.38
Diluted EPS ($) -0.90 0.11 -1.34 -1.30

Past Performance:
Radian Group has missed analyst estimates 3 times in the past four quarters. Shareholders could expect a bust if the company misses estimates.

“E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our successful CHEAT SHEET investing framework. Don’t waste another minute – click here to discover our CHEAT SHEET stock picks now!

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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