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Jun 30, 2020
Fidelity National Financial Q2 2020 Earnings Report
Reported diluted EPS from continuing operations of $1.09 and adjusted diluted EPS from continuing operations of $1.09.
Key Takeaways
Fidelity National Financial reported a strong second quarter, benefiting from high refinance volumes. The acquisition of FGL Holdings was completed on June 1, 2020, diversifying earnings and reducing volatility. Adjusted pre-tax title earnings and margin were the best since Q3 2003.
Total revenue reached approximately $2.4 billion, compared to $2.1 billion in Q2 2019.
Net earnings from continuing operations were $304 million, with adjusted net earnings at $305 million.
Diluted EPS from continuing operations was $1.09, matching the adjusted diluted EPS.
Refinance orders opened increased by 111% and refinance orders closed increased by 158% compared to Q2 2019.
Fidelity National Financial
Fidelity National Financial
Fidelity National Financial Revenue by Segment
Revenue by Segment
Title Segment Revenue
CapyFin.comCorporate and Other Revenue
CapyFin.com Forward Guidance
The company is focused on managing expenses and monitoring order volumes in light of the ongoing pandemic, while maintaining expense discipline. They are committed to maximizing shareholder value through dividends, business growth, and opportunistic share buybacks.
Positive Outlook
- Strong refinance volumes compared to the 2019 comparable period.
- Adjusted pre-tax title earnings and margin were the best since Q3 2003.
- Operational capabilities have ensured security and productivity even with remote work.
- F&G had strong sales in the period, gaining market share while maintaining pricing discipline.
- F&G launched into the independent broker dealer channel in June.
Challenges Ahead
- Ongoing COVID-19 pandemic.
- Commercial revenue declined by 36% due to decrease in closed orders.
- Purchase orders opened decreased 20% on a daily basis.
- Purchase orders closed decreased 24% on a daily basis.
- F&G reported a net loss attributable to common shareholders of $39 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income