NYSE$MTG

MGIC Investment Corporation · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

MGIC Investment Corporation reported strong results driven by solid financial performance and strategic execution.

MGIC Investment Corporation reported a net income of $249.6 million, or $0.81 per diluted share, for the third quarter of 2022, compared to $158.0 million, or $0.46 per diluted share, for the third quarter of 2021. Adjusted net operating income was $264.2 million, or $0.86 per diluted share, compared to $157.1 million, or $0.46 per diluted share for the same period last year.

  • New insurance written was $19.6 billion, reflecting a decrease in origination markets.
  • Persistency increased to 75.7%, indicating a higher percentage of insurance remaining in force.
  • Insurance in force increased to $293.6 billion, demonstrating growth in the company's insured portfolio.
  • Primary delinquency inventory decreased, with the percentage of delinquent loans insured decreasing to 2.17%.

Headline financials

Total Revenue

$293M

Previous: $296M-1.0%
EPS (adj)

$0.86

Previous: $0.46+87.0%
New Insurance Written (NIW)

$19.6B

No prior period
Insurance In Force (IIF)

$294B

Previous: $268B+9.4%
Primary Delinquency Inventory

25.9K

No prior period
Loss Ratio

-41.7%

Previous: 8.1%-614.8%
Underwriting Expense Ratio

24.6%

No prior period
Net Premium Yield (bps)

34.7

Previous: 38.4-9.6%
Capital Expenditures

-$2.4M

Previous: -$2.39M-0.6%
Free Cash Flow

$247M

Previous: $156M+58.9%
Net Income

$250M

Previous: $158M+58.0%
Operating Income

$118M

Previous: $225M-47.7%
Gross Profit

$176M

Previous: $279M-36.8%
Cash & Equivalents

$242M

Previous: $176M+37.2%
Total Assets

$6.15B

Previous: $7.51B-18.1%
Stock-Based Comp

$3.33M

Previous: $12.1M-72.4%

Revenue & EPS history

MGIC · Revenue · Quarterly

$293M

Q3 2022-1%vs Q3 2021
Beat estimate in 1 of 15 quarters(7%)
ActualEstimate

Forward guidance

While rising interest rates, decelerating home prices, and macroeconomic concerns have resulted in increased risks and uncertainties, the company's financial strength and capital flexibility position it to navigate the changing economic cycle.

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 2022

Historical avgQ3 2022

-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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