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.
Looking for alternatives to MGIC Investment? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add MGIC Investment to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.