NYSE$MTG

MGIC Investment Corporation · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported third quarter 2020 results with a net income of $130.8 million.

MGIC Investment Corporation reported a net income of $130.8 million, or $0.38 per diluted share, for the third quarter of 2020. Adjusted net operating income was $149.9 million, or $0.43 per diluted share. New insurance written was $32.8 billion, and insurance in force increased by 9.5% compared to the previous year.

  • Net income for the quarter was $130.8 million, or $0.38 per diluted share.
  • Adjusted net operating income for the third quarter of 2020 was $149.9 million, or $0.43 per diluted share.
  • New insurance written was $32.8 billion.
  • Insurance in force increased by 9.5% compared to the previous year, reaching $238.9 billion.

Headline financials

Total Revenue

$296M

Previous: $318M-7.0%
EPS (adj)

$0.43

Previous: $0.48-10.4%
New Insurance Written (NIW)

$32.8B

Previous: $19.1B+71.7%
Insurance In Force (IIF)

$239B

No prior period
Loss Ratio

15.9%

Previous: 12.7%+25.2%
Net Premium Yield (bps)

43.6

Previous: 49.6-12.1%
Capital Expenditures

-$2.21M

Previous: -$4.08M+45.7%
Free Cash Flow

$129M

Previous: $173M-25.6%
Net Income

$131M

Previous: $177M-26.1%
Operating Income

$207M

Previous: $236M-12.4%
Gross Profit

$252M

Previous: $281M-10.4%
Cash & Equivalents

$380M

Previous: $165M+129.7%
Total Assets

$7.15B

Previous: $6.15B+16.3%

Revenue & EPS history

MGIC · Revenue · Quarterly

$296M

Q3 2020-7%vs Q3 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

MGIC is cautiously optimistic about the continuing resiliency of the housing market, but there is still uncertainty about the timing and pace of the economic recovery and the long-term impact of loss mitigation efforts.

Tailwinds

  • Maintain full operations using virtual workforce model.
  • Resilience of the purchase mortgage market.
  • Attractive refinance market.
  • Strong capital position of MTG and MGIC.
  • Focus on executing business strategies.

Headwinds

  • Uncertainty about the timing and pace of the economic recovery.
  • Long-term impact of loss mitigation efforts undertaken by GSEs and loan servicers.
  • Challenges presented by the COVID-19 pandemic.
  • Lower annual persistency.
  • Adverse economic impact of COVID-19.

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 Q3 2020

Historical avgQ3 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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