Back to top

Image: Bigstock

MGIC (MTG) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates

Read MoreHide Full Article

MGIC Investment (MTG - Free Report) reported $305.55 million in revenue for the quarter ended June 2024, representing a year-over-year increase of 3.4%. EPS of $0.77 for the same period compares to $0.68 a year ago.

The reported revenue represents a surprise of +0.61% over the Zacks Consensus Estimate of $303.7 million. With the consensus EPS estimate being $0.62, the EPS surprise was +24.19%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how MGIC performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • GAAP underwriting expense ratio (insurance operations only)

    : 23.1% versus 21.7% estimated by two analysts on average.
  • GAAP loss ratio (insurance operations only)

    : -7.5% versus the two-analyst average estimate of 11.8%.
  • Revenues- Net investment income

    : $61.48 million compared to the $59.60 million average estimate based on two analysts. The reported number represents a change of +17.5% year over year.
  • Revenues- Net premiums earned

    : $243.53 million versus $243.71 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +0.3% change.
  • Revenues- Other revenue

    : $0.55 million compared to the $0.39 million average estimate based on two analysts. The reported number represents a change of +6.9% year over year.
View all Key Company Metrics for MGIC here>>>

Shares of MGIC have returned +13.3% over the past month versus the Zacks S&P 500 composite's -0.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


MGIC Investment Corporation (MTG) - free report >>

Published in