The 10-second takeaway
For the quarter ended Dec. 31 (Q4), MGIC Investment crushed expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly. Non-GAAP loss per share grew. GAAP loss per share increased.
Margins contracted across the board.
MGIC Investment reported revenue of $371.4 million. The two analysts polled by S&P Capital IQ predicted revenue of $291.1 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $434.2 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 -$2.33. The five earnings estimates compiled by S&P Capital IQ predicted -$1.45 per share. Non-GAAP EPS were -$2.33 for Q4 against -$1.19 per share for the prior-year quarter. GAAP EPS were -$1.91 for Q4 compared to -$0.68 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 -93.9%, much worse than the prior-year quarter. Operating margin was -93.9%, much worse than the prior-year quarter. Net margin was -101.3%, much worse than the prior-year quarter.
Next quarter's average estimate for revenue is $284.8 million. On the bottom line, the average EPS estimate is -$0.07.
Next year's average estimate for revenue is $1.11 billion. The average EPS estimate is -$1.75.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 316 members out of 505 rating the stock outperform, and 189 members rating it underperform. Among 160 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 97 give MGIC Investment a green thumbs-up, and 63 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MGIC Investment is underperform, with an average price target of $1.42.
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