Why Is MGIC (MTG) Up 2.3% Since Last Earnings Report?

Core Viewpoint - MGIC Investment Corporation's recent earnings report shows mixed results, with operating net income per share beating estimates but total operating revenues missing expectations, indicating potential challenges ahead for the company [2][11]. Financial Performance - For Q4 2025, MGIC reported an operating net income per share of 75 cents, exceeding the Zacks Consensus Estimate by 2.7% and improving 4.2% year over year [2]. - Total operating revenues declined 0.9% year over year to $298.7 million, missing the Zacks Consensus Estimate by 2.9% [2]. - Full-year 2025 operating net income per share was $3.14, beating estimates by 11.7% and increasing 8.6% year over year, while total operating revenues were $1.2 billion, up 0.5% year over year but missing estimates by 1.5% [11]. Operational Update - Insurance in force increased 2.6% year over year to $303.1 billion, surpassing estimates [4]. - Primary delinquency rose 1.1% to 27,072 loans during the quarter [4]. - New insurance written increased 7.5% year over year to $17.1 billion [5]. Investment and Capital Deployment - The company repurchased 6.8 million shares for $189.1 million and paid a dividend of $400 million to the holding company [8]. - A dividend of 15 cents per common share was declared for shareholders [9]. Financial Health - Book value per share increased 12.7% year over year to $23.47, while shareholder equity was $5.1 billion, down 0.5% from the previous year [7]. - Total assets rose 1.4% to $6.6 billion as of Dec. 31, 2025 [7]. Market Sentiment and Outlook - Estimates for MGIC have trended downward recently, leading to a Zacks Rank of 4 (Sell), indicating expectations of below-average returns in the coming months [12][14]. - The stock has a subpar Growth Score of D and a value score of B, resulting in an aggregate VGM Score of D [13].