Here's What Key Metrics Tell Us About MGIC (MTG) Q3 Earnings

Zacks Equity Research
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MGIC Investment (MTG) reported $306.07 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 3%. EPS of $0.77 for the same period compares to $0.64 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $306.11 million, representing a surprise of -0.01%. The company delivered an EPS surprise of +14.93%, with the consensus EPS estimate being $0.67.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how MGIC performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • GAAP underwriting expense ratio (insurance operations only): 22.4% compared to the 22.1% average estimate based on two analysts.

  • GAAP loss ratio (insurance operations only): -4% versus the two-analyst average estimate of 13.2%.

  • Revenues- Net investment income: $62.09 million versus the two-analyst average estimate of $63.80 million. The reported number represents a year-over-year change of +12.1%.

  • Revenues- Net premiums earned: $243.34 million compared to the $241.81 million average estimate based on two analysts. The reported number represents a change of +0.9% year over year.

  • Revenues- Other revenue: $0.63 million compared to the $0.51 million average estimate based on two analysts. The reported number represents a change of +15.5% year over year.

View all Key Company Metrics for MGIC here>>>

Shares of MGIC have returned -8.3% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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