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Can MGIC Investment Beat These Numbers?

Monday - 4/29/2013, 2:00am  ET

MGIC Investment is expected to report Q1 earnings on April 30. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict MGIC Investment's revenues will compress -27.2% and EPS will remain in the red.

The average estimate for revenue is $276.5 million. On the bottom line, the average EPS estimate is -$0.16.

Revenue details
Last quarter, MGIC Investment reported revenue of $371.4 million. GAAP reported sales were 12% lower than the prior-year quarter's $434.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at -$2.33. GAAP EPS were -$1.91 for Q4 against -$0.68 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was -93.9%, much worse than the prior-year quarter. Operating margin was -93.9%, much worse than the prior-year quarter. Net margin was -101.3%, much worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.10 billion. The average EPS estimate is -$0.66.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 322 members out of 518 rating the stock outperform, and 196 members rating it underperform. Among 153 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 100 give MGIC Investment a green thumbs-up, and 53 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MGIC Investment is hold, with an average price target of $1.42.

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This article was originally published as Can MGIC Investment Beat These Numbers?on Fool.com

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