NMI Holdings Q3 revenue rises 18%, beats analyst estimates
Overview
US mortgage insurer's Q3 revenue rose and beat analyst expectations
Adjusted EPS for Q3 missed analyst expectations
Company repurchased $27.1 mln in shares during the quarter
Outlook
Company did not provide specific financial guidance for the current or future periods
Result Drivers
HIGHER CLAIMS - Co reported a sharp increase in insurance claims and claim expenses, raising the loss ratio compared to prior quarters
LOWER NEW BUSINESS - New insurance written fell 15% from the prior quarter
INVESTMENT INCOME - Net investment income increased 6% from the prior quarter and 20% from a year ago
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $187.60 mln | $159.80 mln (5 Analysts) |
Q3 Adjusted EPS | Miss | $1.23 | $1.31 (8 Analysts) |
Q3 EPS | $1.23 | ||
Q3 Adjusted Net Income | Miss | $93.70 mln | $100.31 mln (5 Analysts) |
Q3 Net Income | $93.50 mln | ||
Q3 Operating Expenses | $30.80 mln | ||
Q3 ROE | 13.80% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the property & casualty insurance peer group is "buy"
Wall Street's median 12-month price target for NMI Holdings, Inc. is $46.00, about 4.6% above its November 4 closing price of $43.96
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago
Reuters Recommended Reads
Nov 4 - MGIC Investment Q3 net income falls year-over-year
Nov 4 - Radian Group Q3 revenue beats expectations
Nov 4 - Enact Holdings Q3 revenue misses expectations on lower refinance activity, reinsurance impact
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)