NYSE$MTG

MGIC Investment Corporation · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Net income reflected challenges from the economic environment and was impacted by loan loss reserves.

MGIC Investment Corporation reported a net income of $14.0 million, or $0.04 per diluted share, for the second quarter of 2020. The results were impacted by the loan loss reserves established for expected losses on new loan delinquencies due to the economic environment.

  • Maintained full operations through remote work model due to COVID-19 pandemic.
  • New insurance written was $28.2 billion, compared to $14.9 billion in the second quarter of 2019.
  • Insurance in force of $230.5 billion at June 30, 2020 increased by 2% during the quarter and 8% compared to June 30, 2019.
  • Primary delinquency inventory of 69,326 loans at June 30, 2020 increased from 30,028 loans at December 31, 2019.

Headline financials

Total Revenue

$294M

Previous: $292M+0.6%
EPS (adj)

$0.03

Previous: $0.46-93.5%
New Insurance Written (NIW)

$28.2B

Previous: $14.9B+89.3%
Insurance In Force (IIF)

$231B

No prior period
Loss Ratio

89.2%

No prior period
Underwriting Expense Ratio

20.1%

No prior period
Net Premium Yield (bps)

42.7

No prior period
Capital Expenditures

-$942K

Previous: -$3.28M+71.3%
Free Cash Flow

$13.1M

Previous: $164M-92.0%
Net Income

$14M

Previous: $168M-91.6%
Operating Income

$29.4M

Previous: $225M-86.9%
Gross Profit

$73.7M

Previous: $268M-72.5%
Cash & Equivalents

$367M

Previous: $219M+67.5%
Total Assets

$6.57B

Previous: $6.06B+8.6%

Revenue & EPS history

MGIC · Revenue · Quarterly

$294M

Q2 2020+0.6%vs Q2 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

The company did not provide specific financial guidance in its earnings report.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.2%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+3.3%

Avg return

30 days after

54%

37 / 68 earnings

Positive

+35.4%

Q4 2012

Best reaction

-65.7%

Q2 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-9.0%-9.9%-13.5%
Q4 2025-5.2%-0.9%-2.8%
Q3 2025+0.8%+2.5%+8.2%
Q1 2025+1.6%+4.4%+6.2%
Q4 2024+1.8%+0.5%-6.0%
Q3 2024+1.2%+3.8%+8.8%
Q2 2024-1.0%-5.5%+2.7%
Q1 2024+1.1%+3.3%+3.6%
Q4 2023-1.2%-4.8%-2.0%
Q3 2023+1.4%+6.3%+5.4%
Q2 2023+5.3%+7.9%+6.0%
Q1 2023-1.4%+1.3%+6.8%
Q4 2022+1.2%-2.4%-1.5%
Q3 2022-1.8%-1.2%-2.5%
Q2 2022+3.5%+3.5%-0.3%
Q1 2022-0.5%-3.8%+1.8%
Q4 2021-0.7%+1.3%-4.7%
Q3 2021-6.8%-4.3%-14.0%
Q2 2021+1.8%+3.8%+10.6%
Q1 2021-8.1%-8.0%-4.5%
Q4 2020+1.7%-3.7%+1.3%
Q3 2020-4.0%+3.7%+16.7%
Q2 2020+1.7%+3.4%+12.1%
Q1 2020+5.9%+0.0%+45.5%
Q4 2019+3.0%+1.1%-9.4%
Q3 2019+2.8%+3.0%+2.5%
Q2 2019+3.2%-3.0%-5.1%
Q1 2019+3.6%+5.3%-0.9%
Q4 2018+2.0%+1.0%+13.6%
Q3 2018-0.9%-2.8%-4.8%
Q2 2018+9.7%+10.7%+11.1%
Q1 2018-3.9%-4.2%-0.7%
Q4 2017+3.2%+4.0%-5.3%
Q3 2017+5.4%+4.5%+9.8%
Q2 2017+0.6%-1.4%-4.4%
Q1 2017-1.6%-0.5%-3.0%
Q4 2016+2.1%+1.0%+4.4%
Q3 2016+6.7%+7.3%+13.7%
Q2 2016+7.2%+8.5%+23.4%
Q1 2016-4.5%
Q4 2015-13.7%
Q3 2015+2.2%
Q2 2015-2.4%
Q1 2015+2.1%
Q4 2014+0.6%
Q3 2014+6.0%
Q2 2014-7.2%
Q1 2014+6.4%
Q4 2013-7.6%
Q3 2013+12.9%
Q2 2013+12.3%
Q1 2013-6.6%
Q4 2012+35.4%
Q3 2012-3.0%
Q2 2012-65.7%
Q1 2012+2.6%
Q4 2011-2.0%
Q3 2011-11.0%
Q2 2011+9.0%
Q1 2010+1.6%
Q1 2011+1.4%
Q4 2008-3.4%
Q4 2010-3.4%
Q3 2010-2.4%
Q3 2009-2.4%
Q4 2009-1.6%
Q2 2010-1.6%
Q2 2009-1.6%

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