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
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.