How did MTG's Q4 earnings surprise impact annual performance?

MGIC Investment's (MTG) strong Q4 earnings performance had a positive impact on its annual financial results, reflecting sustained growth and operational efficiency throughout the year.

1. **Q4 Earnings Performance**:
- MGIC reported a net income of $185 million for Q4 2024, surpassing market expectations.
- The company’s non-GAAP EPS of $0.72 for Q4 2024 beat expectations by $0.06.
2. **Annual Financial Impact**:
- The robust Q4 performance contributed to a full-year net income of $763 million for 2024, marking a 4.5% increase from the previous year.
- On a per-share basis, net income increased from $2.49 in 2023 to $2.89 in 2024.
3. **Revenue and Operational Insights**:
- MGIC’s revenue for the quarter was $306.65 million, slightly exceeding expectations.
- For the year, the company reported total revenue of $1.22 billion, with adjusted revenue indicating healthy business operations.
4. **Return on Equity and Dividend Payments**:
- MGIC maintained a strong return on equity (ROE) of 14.97% and a notable annualized ROE of 14% for Q4 2024.
- The company continued its commitment to shareholder returns, declaring a quarterly dividend of $0.13 per share, resulting in an annualized dividend yield of 2.22%.
5. **Stock Performance and Analyst Ratings**:
- Despite the positive earnings, MTG’s stock faced fluctuations, with a trading volume of 1,417,249 shares.
- Analysts at Zacks Research raised their Q1 2025 earnings estimates, indicating confidence in MGIC’s continued performance.

In conclusion, MGIC Investment’s impressive Q4 earnings surprise significantly bolstered its annual financial performance, highlighting the company’s strong market position and effective business strategies. This, in turn, supports the notion that MTG remains a strong value stock, as indicated by recent analyst assessments and its consistent track record of exceeding market expectations.