MGIC Investment Q4 Earnings Beat Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Should l Buy MTG?
Source: seekingalpha
MGIC Investment's shares fell by 5.52% after crossing below the 5-day SMA, reflecting a negative market reaction.
The company reported a Q4 non-GAAP EPS of $0.75, exceeding expectations by $0.01, but revenue declined by 0.9% year-over-year to $298.65 million, missing market expectations. This revenue miss has led to investor disappointment, impacting short-term market confidence despite the earnings beat.
Moving forward, MGIC must focus on potential future earnings growth, especially if market conditions improve, which could lead to better performance ahead.
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Analyst Views on MTG
Wall Street analysts forecast MTG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MTG is 29.33 USD with a low forecast of 28.00 USD and a high forecast of 30.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
1 Buy
2 Hold
0 Sell
Moderate Buy
Current: 27.270
Low
28.00
Averages
29.33
High
30.00
Current: 27.270
Low
28.00
Averages
29.33
High
30.00
About MTG
MGIC Investment Corporation, through its principal subsidiary, Mortgage Guaranty Insurance Corporation, serves lenders throughout the United States. The Company provides private mortgage insurance, other mortgage credit risk management solutions and ancillary services. Its mortgage insurance includes primary insurance, and CRT and pool insurance. Primary insurance provides mortgage default protection on individual loans and covers a percentage of the unpaid loan principal, delinquent interest and certain expenses associated with the default and subsequent foreclosure on the mortgage or sale of the underlying property. In connection with the GSEs' credit risk transfer programs, it provides insurance and reinsurance covering portions of the credit risk related to certain reference pools of mortgages acquired by the GSEs. Its non-insurance subsidiary provides contract underwriting services for lenders, pursuant to which loans are underwritten to conform to prescribed guidelines.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
MGIC Investment Corporation Q4 2025 Earnings Highlights
- Strong Financial Performance: MGIC reported net income of $169 million for Q4 2025, with an annualized return on equity of 13%, and a total net income of $738 million for the year, reflecting the company's robust performance and profitability in the market.
- Insurance Business Growth: The company ended 2025 with insurance in force exceeding $303 billion, a 3% year-over-year increase, while writing $17 billion in new business, an 8% rise from the previous year, indicating MGIC's continued expansion in a competitive market.
- Expense Management Optimization: Operating expenses are projected to decline further to a range of $190 million to $200 million in 2026, primarily due to renegotiated quota share reinsurance treaties that will reduce ongoing costs by approximately 40%, thereby enhancing the company's profitability.
- Reinsurance Strategy Strengthening: MGIC has bolstered its reinsurance program with a $250 million excess of loss transaction and a 40% quota share transaction, which not only mitigates risks for future new business but also provides greater capital flexibility to navigate market fluctuations.
See More
MGIC Investment Q4 Earnings Beat Expectations
- Earnings Beat: MGIC Investment reported a Q4 non-GAAP EPS of $0.75, exceeding expectations by $0.01, indicating stable profitability despite revenue challenges.
- Revenue Decline: The company posted revenue of $298.65 million, a 0.9% year-over-year decrease, missing the market expectation of $308.25 million, highlighting competitive pressures in the market.
- Stock Reaction: Following the earnings report, MGIC's shares fell by 1.94%, reflecting investor disappointment over the revenue miss, which may impact short-term market confidence.
- Future Outlook: Despite the current quarter's underperformance, MGIC must focus on potential future earnings growth, especially if market conditions improve, which could lead to better performance ahead.
See More
MGIC Investment to Announce Q4 Earnings on February 2nd
- Earnings Announcement: MGIC Investment is set to release its Q4 earnings on February 2nd after market close, with a consensus EPS estimate of $0.75, reflecting a 4.2% year-over-year increase, which could bolster investor confidence.
- Revenue Expectations: The revenue is projected to reach $308.25 million, marking a 2.3% year-over-year growth, indicating the company's stable performance in the insurance market, potentially having a positive impact on its stock price.
- Historical Performance: Over the past two years, MGIC has beaten EPS estimates 100% of the time and revenue estimates 38% of the time, showcasing strong profitability that enhances market confidence in its future performance.
- Estimate Revisions: In the last three months, EPS estimates have seen three upward revisions and one downward revision, while revenue estimates experienced one upward and two downward revisions, reflecting mixed market sentiments regarding MGIC's future outlook.
See More
MGIC Investment Declares Quarterly Dividend of $0.15 per Share
- Quarterly Dividend Announcement: MGIC Investment has declared a quarterly dividend of $0.15 per share, consistent with previous distributions, indicating the company's stable cash flow and commitment to shareholder returns.
- Dividend Yield: The forward yield of 2.27% reflects the company's attractiveness in the current market environment, potentially drawing more investor interest.
- Payment Schedule: The dividend is payable on March 6, with a record date of February 17 and an ex-dividend date also set for February 17, ensuring shareholders receive timely returns.
- Capital Return Goals: MGIC Investment aims to enhance capital returns while surpassing $300 billion in insurance in-force, demonstrating its strong performance and market position in the reinsurance sector.
See More
MGIC Investment Corporation Declares Quarterly Cash Dividend
- Quarterly Cash Dividend: MGIC Investment Corporation's Board of Directors declared a cash dividend of $0.15 per share, payable on March 6, 2026, to shareholders of record as of February 17, 2026, aimed at rewarding shareholders and boosting investor confidence.
- Supporting Homeownership: As the principal subsidiary, MGIC helps families achieve homeownership sooner by providing affordable low-down-payment mortgages through private mortgage insurance, thereby solidifying its position in the housing finance market.
- Enhanced Information Transparency: MGIC Investment Corporation commits to regularly posting important information on its corporate website, including corrections to previous disclosures, aiming to improve transparency and build investor trust.
- Automatic Alert Service: The company encourages investors to enroll for automatic email alerts and RSS feeds to receive timely updates on new postings, further enhancing engagement and communication with investors.
See More
MGIC Investment Corporation Declares $0.15 Quarterly Cash Dividend
- Quarterly Cash Dividend: MGIC Investment Corporation's Board of Directors has declared a cash dividend of $0.15 per share, payable on March 6, 2026, to shareholders of record as of February 17, 2026, reflecting the company's ongoing commitment to shareholder returns.
- Enhanced Shareholder Services: MGIC encourages investors to enroll for automatic email alerts and RSS feeds to receive timely updates on important company information, thereby improving communication efficiency and transparency with shareholders.
- Market Positioning: As a leading mortgage insurance provider in the U.S., MGIC helps families achieve homeownership sooner by offering affordable low-down-payment mortgages, further solidifying its leadership position in the market.
- Information Release Strategy: MGIC intends to regularly post important information on its corporate website, including corrections to previous disclosures, ensuring that investors can stay informed about the latest developments and enhancing information transparency.
See More
MGIC Investment Corporation Q4 2025 Earnings Highlights
- Strong Financial Performance: MGIC reported net income of $169 million for Q4 2025, with an annualized return on equity of 13%, and a total net income of $738 million for the year, reflecting the company's robust performance and profitability in the market.
- Insurance Business Growth: The company ended 2025 with insurance in force exceeding $303 billion, a 3% year-over-year increase, while writing $17 billion in new business, an 8% rise from the previous year, indicating MGIC's continued expansion in a competitive market.
- Expense Management Optimization: Operating expenses are projected to decline further to a range of $190 million to $200 million in 2026, primarily due to renegotiated quota share reinsurance treaties that will reduce ongoing costs by approximately 40%, thereby enhancing the company's profitability.
- Reinsurance Strategy Strengthening: MGIC has bolstered its reinsurance program with a $250 million excess of loss transaction and a 40% quota share transaction, which not only mitigates risks for future new business but also provides greater capital flexibility to navigate market fluctuations.
See More
MGIC Investment Q4 Earnings Beat Expectations
- Earnings Beat: MGIC Investment reported a Q4 non-GAAP EPS of $0.75, exceeding expectations by $0.01, indicating stable profitability despite revenue challenges.
- Revenue Decline: The company posted revenue of $298.65 million, a 0.9% year-over-year decrease, missing the market expectation of $308.25 million, highlighting competitive pressures in the market.
- Stock Reaction: Following the earnings report, MGIC's shares fell by 1.94%, reflecting investor disappointment over the revenue miss, which may impact short-term market confidence.
- Future Outlook: Despite the current quarter's underperformance, MGIC must focus on potential future earnings growth, especially if market conditions improve, which could lead to better performance ahead.
See More
MGIC Investment to Announce Q4 Earnings on February 2nd
- Earnings Announcement: MGIC Investment is set to release its Q4 earnings on February 2nd after market close, with a consensus EPS estimate of $0.75, reflecting a 4.2% year-over-year increase, which could bolster investor confidence.
- Revenue Expectations: The revenue is projected to reach $308.25 million, marking a 2.3% year-over-year growth, indicating the company's stable performance in the insurance market, potentially having a positive impact on its stock price.
- Historical Performance: Over the past two years, MGIC has beaten EPS estimates 100% of the time and revenue estimates 38% of the time, showcasing strong profitability that enhances market confidence in its future performance.
- Estimate Revisions: In the last three months, EPS estimates have seen three upward revisions and one downward revision, while revenue estimates experienced one upward and two downward revisions, reflecting mixed market sentiments regarding MGIC's future outlook.
See More
MGIC Investment Declares Quarterly Dividend of $0.15 per Share
- Quarterly Dividend Announcement: MGIC Investment has declared a quarterly dividend of $0.15 per share, consistent with previous distributions, indicating the company's stable cash flow and commitment to shareholder returns.
- Dividend Yield: The forward yield of 2.27% reflects the company's attractiveness in the current market environment, potentially drawing more investor interest.
- Payment Schedule: The dividend is payable on March 6, with a record date of February 17 and an ex-dividend date also set for February 17, ensuring shareholders receive timely returns.
- Capital Return Goals: MGIC Investment aims to enhance capital returns while surpassing $300 billion in insurance in-force, demonstrating its strong performance and market position in the reinsurance sector.
See More
MGIC Investment Corporation Declares Quarterly Cash Dividend
- Quarterly Cash Dividend: MGIC Investment Corporation's Board of Directors declared a cash dividend of $0.15 per share, payable on March 6, 2026, to shareholders of record as of February 17, 2026, aimed at rewarding shareholders and boosting investor confidence.
- Supporting Homeownership: As the principal subsidiary, MGIC helps families achieve homeownership sooner by providing affordable low-down-payment mortgages through private mortgage insurance, thereby solidifying its position in the housing finance market.
- Enhanced Information Transparency: MGIC Investment Corporation commits to regularly posting important information on its corporate website, including corrections to previous disclosures, aiming to improve transparency and build investor trust.
- Automatic Alert Service: The company encourages investors to enroll for automatic email alerts and RSS feeds to receive timely updates on new postings, further enhancing engagement and communication with investors.
See More
MGIC Investment Corporation Declares $0.15 Quarterly Cash Dividend
- Quarterly Cash Dividend: MGIC Investment Corporation's Board of Directors has declared a cash dividend of $0.15 per share, payable on March 6, 2026, to shareholders of record as of February 17, 2026, reflecting the company's ongoing commitment to shareholder returns.
- Enhanced Shareholder Services: MGIC encourages investors to enroll for automatic email alerts and RSS feeds to receive timely updates on important company information, thereby improving communication efficiency and transparency with shareholders.
- Market Positioning: As a leading mortgage insurance provider in the U.S., MGIC helps families achieve homeownership sooner by offering affordable low-down-payment mortgages, further solidifying its leadership position in the market.
- Information Release Strategy: MGIC intends to regularly post important information on its corporate website, including corrections to previous disclosures, ensuring that investors can stay informed about the latest developments and enhancing information transparency.
See More
