MGIC Investment Earnings: Here’s Why Investors are Not Happy Now
MGIC Investment Corp. (NYSE:MTG) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 2.5%.
MGIC Investment Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $-1.91 in the quarter versus EPS of $-0.67 in the year-earlier quarter.
Revenue: Decreased 16.91% to $371.4 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: MGIC Investment Corp. reported adjusted EPS loss of $1.91 per share. By that measure, the company missed the mean analyst estimate of $-1.77. It beat the average revenue estimate of $322.32 million.
Quoting Management: Curt S. Culver, CEO and Chairman of the Board of Mortgage Guaranty Insurance Corporation (“MGIC”) and MTG, said that “I am pleased that we have settled our Freddie Mac dispute and have made substantial progress towards resolving the Countrywide dispute. In tandem with these efforts we are continuing to execute our strategy of writing new business through a combination of MGIC and, as it is needed, its wholly owned subsidiary, MGIC Indemnity Corporation.” He added that “our strategy, which is approved by the Office of the Commissioner of Insurance for the State of Wisconsin, Fannie Mae and Freddie Mac, provides borrowers with a more affordable insurance option, for higher quality loans, than they could find with the FHA.”
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