Benzinga | Feb 22, 2021 10:33AM EST

Earnings Outlook For MGIC Investment

On Tuesday, February 23, MGIC Investment (NYSE:MTG) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

MGIC Investment earnings will be near $0.4 per share on sales of $301.14 million, according to analysts. MGIC Investment EPS in the same period a year ago totaled $0.49. Sales were $311.63 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Tuesday, earnings would be down 18.37%. Sales would be down 3.36% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.31 0.17 0.41 0.43EPS Actual 0.43 0.03 0.42 0.49Revenue Estimate 293.52 M 295.15 M 305.93 M 306.96 MRevenue Actual 296.00 M 293.97 M 306.89 M 311.63 M

Stock Performance

Shares of MGIC Investment were trading at $12.67 as of February 19. Over the last 52-week period, shares are down 0.9%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. MGIC Investment is scheduled to hold the call at 10:00:00 ET and can be accessed here.