MGIC Investment (US:MTG) ZACKSยท2024-08-30 16:37Core Viewpoint - MGIC Investment reported strong second-quarter earnings, beating estimates and increasing its dividend, indicating positive financial performance and shareholder value enhancement [2][8]. Financial Performance - The company reported operating net income per share of 77 cents, exceeding the Zacks Consensus Estimate by 24.2% and reflecting a 13.2% year-over-year increase [2]. - Total operating revenues reached $306 million, a 3.4% increase year-over-year, driven by higher net investment income and premiums earned, surpassing the consensus mark by 0.6% [2]. - Net investment income rose 17.5% year-over-year to $61.5 million, exceeding estimates [4]. Operational Metrics - Insurance in force decreased by 0.3% year-over-year to $291.6 billion, missing the consensus estimate of $295.26 billion [4]. - Primary delinquency decreased by 1.9% year-over-year to 23,370 loans [4]. - New insurance written increased by 8.8% year-over-year to $13.5 billion, significantly above the estimate of $10 billion [5]. Capital Management - The company repurchased 7.6 million shares for $157 million and has an additional share repurchase program authorized for up to $750 million [7]. - A 13% increase in the quarterly dividend to 13 cents per share was approved, with payment scheduled for August 22, 2024 [8]. Market Outlook - Estimates for MGIC have trended upward, with a consensus estimate shift of 5.82% in the past month, indicating positive market sentiment [9]. - The stock holds a Zacks Rank 1 (Strong Buy), suggesting expectations for above-average returns in the coming months [11]. Industry Context - MGIC operates within the Zacks Insurance - Multi line industry, where peers like The Hartford have also shown positive performance, gaining 6% over the past month [12].