Mortgage insurer MGIC Investment (NYSE: MTG) will be announcing earnings results this Wednesday afternoon. Here’s what to look for.
MGIC Investment missed analysts’ revenue expectations last quarter, reporting revenues of $297.1 million, down 3% year on year. It was a slower quarter for the company, with a narrow beat of analysts’ EPS estimates.
Is MGIC Investment a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting MGIC Investment’s revenue to decline 2.5% year on year, a deceleration from its flat revenue in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. MGIC Investment has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at MGIC Investment’s peers in the property & casualty insurance segment, some have already reported their Q2 results, giving us a hint as to what we can expect. First American Financial delivered year-on-year revenue growth of 15%, beating analysts’ expectations by 3.4%, and RLI reported revenues up 5%, topping estimates by 1%. First American Financial traded down 2.2% following the results while RLI was up 3.7%.
Read our full analysis of First American Financial’s results here and RLI’s results here.
There has been positive sentiment among investors in the property & casualty insurance segment, with share prices up 4.7% on average over the last month. MGIC Investment is up 6.3% during the same time and is heading into earnings with an average analyst price target of $28.80 (compared to the current share price of $30.01).
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