MGIC Investment
The 10-second takeaway
For the quarter ended June 30 (Q2), MGIC Investment beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP loss per share increased.
Margins dropped across the board.
Revenue details
MGIC Investment logged revenue of $321.1 million. The six analysts polled by S&P Capital IQ wanted to see revenue of $294.3 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $374.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at -$1.49. The six earnings estimates compiled by S&P Capital IQ anticipated -$0.52 per share. GAAP EPS were -$1.36 for Q2 versus -$0.75 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was -81.6%, 4,460 basis points worse than the prior-year quarter. Operating margin was -81.6%, 4,460 basis points worse than the prior-year quarter. Net margin was -82.8%, 4,230 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $277.5 million. On the bottom line, the average EPS estimate is -$0.73.
Next year's average estimate for revenue is $1.20 billion. The average EPS estimate is -$3.20.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 312 members out of 505 rating the stock outperform, and 193 members rating it underperform. Among 144 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 73 give MGIC Investment a green thumbs-up, and 71 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MGIC Investment is hold, with an average price target of $4.79.
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