MGIC Investment Corp. (NYSE: MTG) looks like it is visiting Implosion Row all over again after the mortgage insurer’s earnings report. The company reports that its second-quarter earnings came to a loss of $1.36 in earnings per share. To show just how bad this is, it is down $0.84 per share worse than what was expected, as Thomson Reuters had a consensus estimate of -$0.52 in earnings per share. The mortgage insurer also said that its quarterly revenues fell by some 12.5% on a year-over-year basis to $321.1 million. We had a Thomson Reuters consensus of almost $294 million.
Perhaps the logic is “who cares if you beat on sales when you lose money on every sale!”
MGIC also said that its net premiums written in the second quarter were down to $238.6 million from a level of $270.4 million for the second quarter of 2011.
We would expect MGIC trading to be very active today Shares closed at $2.45 on Wednesday and the 52-week trading range is $1.51 to $5.15. Unfortunately, shares are down more than 45% so far this morning and the shares are down around $1.30 in early trading. Many mortgage insurance peers have already imploded. Here is just one more 52-week low.
Who cares now if its book value is listed as $4.29 per share?
JON C. OGG
Find a Qualified Financial Advisor (Sponsor)
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.