MGIC Investment Corp. reports third-quarter results Wednesday after the market close. Analysts expect earnings per share of $0.81, down from $0.87 in the second quarter. Revenue is projected to edge up to $298.8 million from $295.4 million.
The Milwaukee-based mortgage insurer faces a year-over-year decline. The EPS forecast represents a 2% drop from the prior-year quarter, and revenue is expected to slip 1.9% compared with the third quarter of 2025.
Investors will watch new insurance written volumes as a gauge of demand. MGIC wrote $17.8 billion of new insurance in the second quarter. The source says mortgage rates have climbed back above 7%, a three-year high.
BTIG analyst Douglas Harter initiated coverage in September with a neutral rating. Harter said shares trade toward the high end of their historical range on valuation measures, which limits upside. He also said MGIC "should continue to return greater than 100% of earnings to shareholders."
An executive order signed October 22 directs agencies to consider a pilot program for automatic cancellation of private mortgage insurance. The source says this could shorten the life of PMI policies and pressure premium income over time.
In the second quarter, MGIC reported adjusted net operating income of $0.87 per share, beating the $0.77 consensus estimate. CEO Tim Mattke cited a 14.5% return on equity.
The stock traded near $28.64 at the time of the report, within a 52-week range of $24.69 to $31.89. The consensus price target is $30.33.