Stewart Q3 revenue slightly beats estimates on higher agency title and acquisition
STC•Stewart's third-quarter revenue rose 13% year over year to $900.7 million, slightly above the $894.9 million consensus estimate. Adjusted EPS declined year over year, while net income was $30.3 million.
1. Revenue growth
Stewart's third-quarter revenue increased 13% year over year to $900.7 million, slightly above analysts' $894.9 million estimate. Growth in its title segment was primarily driven by higher agency title revenue; real estate solutions revenue benefited mainly from the recent MCS acquisition and higher credit information and valuation services revenue.
2. Costs and outlook
Adjusted EPS declined year over year, reflecting increased industry headwinds and higher operating expenses. Stewart attributed higher expenses to an increased employee count following acquisitions and higher service costs, and said it expects industry headwinds to persist into next year.
