Compared to Estimates, NMI Holdings (NMIH) Q3 Earnings: A Look at Key Metrics
For the quarter ended September 2023, NMI Holdings (NMIH) reported revenue of $148.16 million, up 13.5% over the same period last year. EPS came in at $1.00, compared to $0.90 in the year-ago quarter.
The reported revenue represents a surprise of +1.97% over the Zacks Consensus Estimate of $145.3 million. With the consensus EPS estimate being $0.94, the EPS surprise was +6.38%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how NMI Holdings performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Insurance in force (IIF): $194.78 billion versus the three-analyst average estimate of $206.06 billion.
Risk in force(RIF): $51.01 billion versus the three-analyst average estimate of $53.46 billion.
Combined ratio: 25% compared to the 29.7% average estimate based on three analysts.
Loss ratio: 3.7% versus 6.7% estimated by three analysts on average.
Expense Ratio: 21.3% versus the three-analyst average estimate of 23.2%.
Net investment income: $17.85 million compared to the $15.95 million average estimate based on three analysts. The reported number represents a change of +49.5% year over year.
Net Premiums Earned: $130.09 million versus $128.88 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +10% change.
Other Revenues: $0.22 million compared to the $0.21 million average estimate based on two analysts. The reported number represents a change of -27.9% year over year.
View all Key Company Metrics for NMI Holdings here>>>
Shares of NMI Holdings have returned +4.6% over the past month versus the Zacks S&P 500 composite's -2.2% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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