MGIC Investment Earnings Preview: Get Ahead of the Analysts

MGIC Investment (NYSE:MTG) will report earnings before markets open on Tuesday, July 23rd. MGIC Investment Corporation, through its subsidiary, provides private mortgage insurance coverage in the United States. The Company’s customers include thrifts, mortgage bankers and brokers, commercial banks, credit unions, and other lending institutions. The Company also provides, through subsidiaries, underwriting and contract services related to home mortgage lending.

Here is your Cheat Sheet to Mgic Investment Earnings:

Earnings Expectations: Analysts expect earnings of $-0.16 per share on revenues of $266.21 million.

Analyst Trends:

Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.22 to a loss $0.23. For the current year, the average estimate is a loss of $0.83, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Mgic Investment has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 1,722 1,709 1,521 1,504 1,378
Diluted EPS ($) -4.55 -10.65 -2.06 -2.42 -4.59

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 321.09 306.22 371.37 269.18
Diluted EPS ($) -1.36 -1.22 -1.91 -0.31

Past Performance:
Mgic Investment has missed analyst estimates 3 times in the past four quarters. Shareholders could expect a bust if the company misses estimates.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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