Essent Group Shares Fall Nearly 8% Following Third-Quarter Earnings Miss
Essent Group (ESNT) saw its stock price decline by approximately 7.57% following the release of its third-quarter earnings report. While total revenue grew nearly 20% year-over-year to over $374 million, the company missed analyst expectations for profitability, reporting net income of $1.82 per share against a consensus forecast of $1.85. The decline was driven by several key factors, including a dip in new mortgage insurance written and an increase in underwriting and operating expenses. Most notably, investors reacted to a rising mortgage default rate, which climbed to 2.75% from the previous quarter's 2.5%, signaling potential headwinds for the insurer's core business model.
Tickers: $ESNT
Topics: earnings report mortgage insurance net income miss revenue growth