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Sep 30, 2020
Fidelity National Financial Q3 2020 Earnings Report
Reported diluted EPS from continuing operations of $1.39 and adjusted diluted EPS from continuing operations of $1.48.
Key Takeaways
Fidelity National Financial reported strong Q3 2020 results, with total revenue of approximately $3.0 billion. The company's adjusted pre-tax title earnings reached a record $528 million, and the adjusted pre-tax title margin was 21.2%, the best since Q3 2003. F&G's entrance into the bank and broker dealer channel has surpassed expectations, contributing to strong sales results.
Total revenue of approximately $3.0 billion versus $2.2 billion in the third quarter of 2019.
Net earnings from continuing operations of $406 million and adjusted net earnings from continuing operations of $435 million.
Diluted EPS from continuing operations of $1.39 and adjusted diluted EPS from continuing operations of $1.48.
Total commercial revenue of $216 million, a 28% decline versus total commercial revenue in the third quarter of 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
FNF is focused on consistent dividend growth, growing its business, and targeting $500 million of share repurchases over the next twelve months.
Positive Outlook
- Sequential improvement every month in closed orders per day
- Generated adjusted pre-tax title earnings of $528 million, a record quarter
- Adjusted pre-tax title margin of 21.2%, our best quarterly margin since the third quarter of 2003
- Refinance opened and closed orders on a daily basis increased 83% and 87%, respectively
- F&G team continues to execute against its growth strategy, producing strong sales results in the third quarter
Challenges Ahead
- Commercial revenue declined 28% compared to the prior year
- Decline in total commercial fee per file
- Weakness or adverse changes in the level of real estate activity
- Potential inability to find suitable acquisition candidates
- Dependence on distributions from title insurance underwriters as a main source of cash flow
Revenue & Expenses
Visualization of income flow from segment revenue to net income