The 10-second takeaway
For the quarter ended Sep. 30 (Q3), 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 expanded.
Margins contracted across the board.
MGIC Investment logged revenue of $306.2 million. The four analysts polled by S&P Capital IQ anticipated revenue of $285.0 million on the same basis. GAAP reported sales were 9.8% lower than the prior-year quarter's $349.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$1.25. The five earnings estimates compiled by S&P Capital IQ anticipated -$0.71 per share. GAAP EPS were -$1.22 for Q3 against -$0.82 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was -71.5%, 2,410 basis points worse than the prior-year quarter. Operating margin was -71.5%, 2,410 basis points worse than the prior-year quarter. Net margin was -78.3%, 3,100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $282.8 million. On the bottom line, the average EPS estimate is -$0.78.
Next year's average estimate for revenue is $1.25 billion. The average EPS estimate is -$4.09.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 308 members out of 499 rating the stock outperform, and 191 members rating it underperform. Among 152 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 83 give MGIC Investment a green thumbs-up, and 69 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 $1.50.
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