EMERYVILLE, Calif., July 29, 2025 (GLOBE NEWSWIRE) -- NMI Holdings, Inc. (Nasdaq: NMIH) today reported net income of $96.2 million, or $1.21 per diluted share, for the second quarter ended June 30, 2025, compared to $102.6 million, or $1.28 per diluted share, for the first quarter ended March 31, 2025 and $92.1 million, or $1.13 per diluted share, for the second quarter ended June 30, 2024. Adjusted net income for the quarter was $96.5 million, or $1.22 per diluted share, compared to $102.5 million, or $1.2 ...

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for MGIC Investment (MTG) despite higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - MGIC is expected to report quarterly earnings of $0.70 per share, reflecting a year-over-year decrease of 9.1%, while revenues are projected to be $306.76 million, an increase of 0.4% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their outlook for the company [4]. Earnings Surprise Prediction - The Zacks Earnings ESP for MGIC is +2.37%, suggesting a likelihood of beating the consensus EPS estimate, although the stock holds a Zacks Rank of 3 [12]. Historical Performance - MGIC has consistently beaten consensus EPS estimates, achieving a surprise of +13.64% in the last reported quarter and surpassing estimates in all of the last four quarters [13][14]. Market Reaction Factors - The stock's movement may not solely depend on earnings results, as other factors can influence investor sentiment and stock performance [15].

Company Announcement - NMI Holdings, Inc. will report its second quarter results for the period ended June 30, 2025, after market close on July 29, 2025 [1] - A conference call and live webcast will be held at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time on the same day [2] Company Overview - NMI Holdings, Inc. is the parent company of National Mortgage Insurance Corporation, a private mortgage insurance company in the U.S. that supports low-down-payment borrowers while protecting lenders and investors from losses due to borrower defaults [3]

Company Overview - Enact Holdings, Inc. operates primarily through its wholly-owned subsidiary Enact Mortgage Insurance Corporation since 1981, and is a leading U.S. private mortgage insurance provider [4] - The company is committed to helping more people achieve homeownership by partnering with lenders to provide best-in-class service, underwriting expertise, and risk management [4] - Enact is headquartered in Raleigh, North Carolina [4] Upcoming Financial Events - Enact will issue its second quarter earnings release after the market closes on July 30, 2025 [1] - A conference call to review the second quarter 2025 financial results is scheduled for July 31, 2025, at 8:00 a.m. (ET) [1] - The earnings release, summary presentation, and financial supplement will be available on the company's website at the time of their public release [1] Participation in Conference Call - Participants interested in the live question and answer session must pre-register to obtain a dial-in number and unique PIN [2] - It is recommended to join the call at least 15 minutes in advance, although registration can occur ahead of the call [2] - A live webcast of the event will also be available on the company's website for those who do not plan to ask questions [2] Archiving of Webcast - The webcast of the conference call will be archived on the company's website for one year [3]

Core Insights - National Mortgage Insurance Corporation (National MI) has received three prestigious company culture awards, including recognition as a Great Place To Work in 2025 and a "Decade of Great" distinction for ten consecutive years [1][2] - The company ranked No. 22 among Fortune magazine's Best Workplaces in the Bay Area, achieving this position by surpassing rigorous benchmarks [2][4] - A significant 96% of employees affirmed that National MI is a Great Place To Work, which is 39 points higher than the average U.S. company [3] Company Culture and Employee Experience - National MI emphasizes the importance of employee feedback in shaping workplace culture, with a commitment to maintaining a collaborative and positive environment [5] - The company has established a new standard of excellence in the industry, driven by a talented and dedicated team [3][5] - Employees rated National MI highly in areas such as excellent service delivery, a welcoming environment for new employees, work-life balance encouragement, and celebrating innovative approaches [8] Recognition and Methodology - This marks National MI's fourth appearance on the Fortune Best Workplaces in the Bay Area List, highlighting its consistent performance in employee satisfaction [4] - The selection for the Fortune Best Workplaces in the Bay Area involved surveying 1.3 million employees across the U.S., with nearly 85,000 responses from eligible companies [9]

Core Viewpoint - NMI Holdings Inc. (NMIH) is experiencing strong investor confidence, with shares closing at $40.69, near its 52-week high, indicating potential for further price appreciation [1] Stock Performance - NMIH shares have gained 25.1% over the past year, outperforming the Finance sector's growth of 18.4% and the Zacks S&P 500 composite's growth of 9.4% [4] - The stock is trading above its 50-day and 200-day simple moving averages of $36.94 and $37.82, respectively, indicating solid upward momentum [1] Earnings Growth - NMIH's earnings have grown by 15.7% over the last five years, with a solid surprise history of beating earnings estimates in three of the last four quarters, averaging an 8.17% beat [2] - The Zacks Consensus Estimate for NMIH's 2025 earnings per share indicates a year-over-year increase of 8%, with revenues projected to reach $685.46 million, reflecting a 5.3% improvement [8] Valuation Metrics - NMIH shares are trading at a forward price-to-book value of 1.36X, lower than the industry average of 1.56X and the Finance sector's 4.11X [7] - The average target price for NMIH, based on short-term price targets from seven analysts, is $41.86 per share, suggesting a potential upside of 3.7% from the last closing price [12] Analyst Sentiment - Analysts have raised estimates for NMIH's earnings for 2025 by 5.4% and for 2026 by 1.2% over the past 60 days, indicating positive sentiment [9] Return on Capital - NMIH's return on equity (ROE) for the trailing 12 months was 17.27%, significantly higher than the industry's 7.8%, reflecting efficient utilization of shareholders' funds [14] Growth Opportunities - NMIH is well-positioned to capitalize on growth in the mortgage insurance sector, supported by a robust reinsurance strategy and increased production of both monthly and single premium policies [6][15] - The company has authorized a new $250 million share repurchase program to enhance its return profile and manage expenses effectively [17] Conclusion - NMIH is expected to benefit from favorable growth estimates, a higher return on capital, and an attractive valuation, making it a stock worth holding [19][20]

Core Viewpoint - MGIC Investment (MTG) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates in determining near-term stock price movements, making it a valuable tool for investors [2][4]. - The upgrade for MGIC reflects a positive outlook on its earnings, which could lead to increased buying pressure and a rise in stock price [3][5]. Earnings Estimate Revisions - Empirical research indicates a strong correlation between earnings estimate revisions and stock price movements, highlighting the importance of tracking these revisions for investment decisions [6]. - The Zacks Rank system classifies stocks based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. Current Earnings Estimates for MGIC - MGIC is projected to earn $2.90 per share for the fiscal year ending December 2025, reflecting a year-over-year change of -0.3% [8]. - Over the past three months, the Zacks Consensus Estimate for MGIC has increased by 7.1%, indicating a positive trend in earnings estimates [8]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings across its universe of over 4000 stocks, with only the top 5% receiving a 'Strong Buy' rating [9]. - The upgrade of MGIC to a Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Group 1 - Fortis Inc. (FTS) is a Canadian electric and gas utility company with a Zacks Rank 1, and its current year earnings estimate increased by 4.2% over the last 60 days [1] - Fortis' shares have gained 9.5% over the last three months, while the S&P 500 declined by 1%, indicating strong performance [1] - The company has a Momentum Score of A, reflecting its strong momentum characteristics [1] Group 2 - MGIC Investment Corporation (MTG) is a mortgage insurance company with a Zacks Rank 1, and its current year earnings estimate increased by 1.8% over the last 60 days [2] - MGIC's shares have gained 8.9% over the last three months, compared to the S&P 500's decline of 1%, showcasing solid performance [2] - The company possesses a Momentum Score of B, indicating good momentum characteristics [2]

Group 1: Fortis Inc. (FTS) - Fortis Inc. is a Canadian electric and gas utility company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for Fortis' current year earnings has increased by 4.2% over the last 60 days [1] - Fortis has a dividend yield of 3.6%, which is higher than the industry average of 3.1% [1] Group 2: MGIC Investment Corporation (MTG) - MGIC Investment Corporation is a mortgage insurance company with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for MGIC's current year earnings has increased by 1.8% over the last 60 days [2] - MGIC has a dividend yield of nearly 2%, compared to the industry average of 1.7% [2]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported net income of $175 million, a decrease from $182 million a year ago [6] - Diluted earnings per share were $1.69, compared to $1.70 in the same quarter last year [6] - The annualized return on average equity was 12% for the quarter [6] - Consolidated cash and investments as of March 31 were $6.4 billion, with a new money yield over 5% [9] - The annualized investment yield for Q1 was 3.8% [10] Business Line Data and Key Metrics Changes - The U.S. mortgage insurance in force was $245 billion, a 3% increase year-over-year [9] - The mortgage insurance net premium earned for Q1 was $234 million, including $15.5 million from Essent Re [14] - The average base premium rate for the U.S. mortgage insurance portfolio was 41 basis points, consistent with the previous quarter [15] - The default rate on the U.S. mortgage insurance portfolio was 2.19%, down from 2.27% at the end of Q4 2024 [16] Market Data and Key Metrics Changes - The company noted challenges for lenders due to lower originations from higher rates and affordability issues [6][7] - The persistency rate for the mortgage insurance portfolio was 86%, flat from the previous quarter [9] Company Strategy and Development Direction - The company aims to balance a conservative balance sheet while preserving optionality for strategic growth opportunities and optimizing shareholder returns [10] - The management believes that favorable demographic trends and current affordability issues are creating pent-up demand for housing [5] - The company is focused on maintaining strong unit economics and is valuation sensitive regarding share buybacks [11][59] Management's Comments on Operating Environment and Future Outlook - Management expressed a constructive long-term outlook for housing, despite near-term headwinds to consumer spending and economic growth [5] - The management highlighted the importance of income growth to unlock housing supply and indicated that the average age of first-time homeowners is 38, suggesting pent-up demand [29] - The company is well-positioned to navigate the current environment due to the strength of its operating model [21] Other Important Information - The Board approved a common dividend of $0.31 for Q2 2025 [10] - The company repurchased nearly 4 million shares for over $200 million year-to-date through April 30 [11] - The PMIERs sufficiency ratio was strong at 172% with $1.5 billion in excess available assets [18] Q&A Session Summary Question: Affordability cycle for homeownership - Management noted uncertainty in the affordability cycle but indicated that the quality of borrowers remains strong due to current conditions [25][26] Question: Managing risk amid macro uncertainty - Management stated that pricing adjustments are made based on micro factors and that they are in a wait-and-see mode regarding macroeconomic impacts [37][39] Question: Buybacks in Q1 versus April - The company repurchased 2.8 million shares for $157 million in Q1 and 1.1 million shares for $61 million in April [46] Question: Changes in unit economics over the last few years - Management indicated that unit economics have remained strong, with pricing increases observed in 2022 [55][56] Question: Update on the title business - Management expressed confidence in the title business, noting it is positioned for growth when interest rates decline [66][68] Question: Dividend flows from underwriting companies - Management indicated that they will continue to maximize dividends from both entities, subject to credit conditions [75][79]