The 10-second takeaway
For the quarter ended June 30 (Q2), MGIC Investment met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share increased. GAAP earnings per share expanded.
Margins expanded across the board.
MGIC Investment notched revenue of $263.9 million. The five analysts polled by S&P Capital IQ expected a top line of $262.2 million on the same basis. GAAP reported sales were 18% lower than the prior-year quarter's $333.9 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 $0.05. The five earnings estimates compiled by S&P Capital IQ predicted -$0.13 per share. Non-GAAP EPS were $0.05 for Q2 versus -$1.49 per share for the prior-year quarter. GAAP EPS were $0.04 for Q2 versus -$1.37 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 11.4%, much better than the prior-year quarter. Operating margin was 11.4%, much better than the prior-year quarter. Net margin was 4.5%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $261.3 million. On the bottom line, the average EPS estimate is -$0.17.
Next year's average estimate for revenue is $1.05 billion. The average EPS estimate is -$0.70.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 321 members out of 517 rating the stock outperform, and 196 members rating it underperform. Among 158 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 106 give MGIC Investment a green thumbs-up, and 52 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 $5.86.
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