Stewart Information Services Corporation (NYSE:STC) recently announced its financial performance for the first quarter of 2024, showcasing an improvement compared to the corresponding period in 2023.
The company’s net income attributable to Stewart surged to $0.93 per diluted share in Q1 2024, a significant increase from the net loss of $0.33 per diluted share reported in Q1 2023. On an adjusted basis, Stewart’s net income stood at $1.04 per diluted share in Q1 2024, compared to $0.91 per diluted share in Q1 2023.
Stewart’s pretax income before noncontrolling interests amounted to $68.3 million on an adjusted basis in the first quarter of 2024, marking an improvement from the pretax loss of $28.2 million (or pretax income of $29.7 million on an adjusted basis) recorded in the first quarter of 2023.
The company attributed its improved financial performance primarily to the growth in commercial revenues and investment income. However, these gains were partially offset by a decline in residential transaction volumes and an increase in expenses.
Stewart’s CEO emphasized the company’s commitment to strategic investments and maintaining a balance between cost discipline and long-term enterprise initiatives aimed at enhancing its strength and resilience.
Key Financial Highlights:
– Net income attributable to Stewart: $0.93 per diluted share in Q1 2024, compared to a net loss of $0.33 per diluted share in Q1 2023
– Adjusted net income: $1.04 per diluted share in Q1 2024, compared to $0.91 per diluted share in Q1 2023
– Pretax income before noncontrolling interests: $68.3 million on an adjusted basis in Q1 2024, compared to a pretax loss of $28.2 million (or pretax income of $29.7 million on an adjusted basis) in Q1 2023
– Commercial revenues increased significantly, partially offsetting the decline in residential transaction volumes
– Investment income improved due to higher interest income
– Expenses increased slightly, primarily driven by higher outside search expenses related to increased commercial revenues
Outlook:
Stewart anticipates ongoing challenges in residential transaction volumes due to the higher interest rate environment. However, the company remains optimistic about its commercial revenues and is committed to its strategic investments and cost discipline measures to navigate the current market conditions and emerge as a stronger enterprise.
