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Compared to Estimates, MGIC (MTG) Q4 Earnings: A Look at Key Metrics

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MGIC Investment (MTG - Free Report) reported $303.09 million in revenue for the quarter ended December 2024, representing a year-over-year increase of 6.5%. EPS of $0.72 for the same period compares to $0.67 a year ago.

The reported revenue represents a surprise of -1.14% over the Zacks Consensus Estimate of $306.58 million. With the consensus EPS estimate being $0.65, the EPS surprise was +10.77%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

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): 20.8% versus 22.4% estimated by two analysts on average.
  • GAAP loss ratio (insurance operations only): 3.6% compared to the 13.2% average estimate based on two analysts.
  • Revenues- Other revenue: $0.47 million versus $0.50 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +0.2% change.
  • Revenues- Net investment income: $61.32 million versus the two-analyst average estimate of $64.96 million. The reported number represents a year-over-year change of +6.1%.
  • Revenues- Net premiums earned: $241.30 million compared to the $241.12 million average estimate based on two analysts. The reported number represents a change of +6.6% year over year.
View all Key Company Metrics for MGIC here>>>

Shares of MGIC have returned +7.1% over the past month versus the Zacks S&P 500 composite's +2.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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