MGIC Investment Corp. (MTG)

[tommiegun54]

$84 MILLION LOSS RESERVES RELEASED FROM LLR AND LAE IN Q4 2020

*IF ADDED TO NET INCOME, THAT'S $.26 CENTS EXTRA EARNINGS PER SHARE FOR Q4 2020 OF THE ANALYST'S EARNINGS ESTIMATE OF $.39 CENTS

*THE $.64 CENTS EARNINGS PER SHARE, WOULD BLOW APART ANALYST ESTIMATES OF $.39 CENTS

*THAT'S 10% OF Q3 2020 LOAN LOSS RESERVES OF $840 MILLION

*10% OF LOAN DELINQUENCIES WERE REMOVED LOAN DEFAULTS AS OF DECEMBER 31, 2020

Beating analyst earnings estimates by 66% has not been a trend pattern that management has taken in the past.

I estimate management will post EARNINGS of $.48 - $.49 cents per share, that's a 25% increase or beat of analyst's estimates for Q4 2020

MGIC HAS ALREADY DECLARED a DIVIDEND on MTG PAYABLE TO HOLDERS OVER THE NEXT WEEK.

I BELIEVE MANAGEMENT WILL CONTINUE TO BUILD LOAN LOSS RESERVES with the remainder of the $84 million savings from reduced DELINQUENCIES.