The upcoming report from MGIC Investment (MTG) is expected to reveal quarterly earnings of $0.73 per share, indicating an increase of 1.4% compared to the year-ago period. Analysts forecast revenues of $306.65 million, representing an increase of 1.2% year over year.
Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
That said, let's delve into the average estimates of some MGIC metrics that Wall Street analysts commonly model and monitor.
The average prediction of analysts places 'Revenues- Net investment income' at $62.37 million. The estimate indicates a change of +1.7% from the prior-year quarter.
The consensus among analysts is that 'Revenues- Net premiums earned' will reach $243.82 million. The estimate indicates a year-over-year change of +1.1%.
Analysts forecast 'GAAP loss ratio (insurance operations only)' to reach 18.2%. Compared to the present estimate, the company reported 3.6% in the same quarter last year.
The combined assessment of analysts suggests that 'GAAP underwriting expense ratio (insurance operations only)' will likely reach 20.7%. Compared to the current estimate, the company reported 20.8% in the same quarter of the previous year.
View all Key Company Metrics for MGIC here>>>
Over the past month, shares of MGIC have returned -10.5% versus the Zacks S&P 500 composite's +0.8% change. Currently, MTG carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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MGIC Investment Corporation (MTG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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