As you might know, MGIC Investment Corporation (NYSE:MTG) recently reported its quarterly numbers. Results look mixed - while revenue fell marginally short of analyst estimates at US$294m, statutory earnings beat expectations 4.6%, with MGIC Investment reporting profits of US$0.64 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Following the latest results, MGIC Investment's four analysts are now forecasting revenues of US$1.21b in 2024. This would be a reasonable 3.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to dip 6.6% to US$2.54 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$1.22b and earnings per share (EPS) of US$2.47 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of US$22.44, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values MGIC Investment at US$24.00 per share, while the most bearish prices it at US$20.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the MGIC Investment's past performance and to peers in the same industry. For example, we noticed that MGIC Investment's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 4.9% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 0.6% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.7% annually. So it looks like MGIC Investment is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around MGIC Investment's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$22.44, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for MGIC Investment going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for MGIC Investment (1 can't be ignored!) that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.