Why did NMIH's Q3 2024 EPS fall short of forecasts?

NMI Holdings' (NMIH) Q3 2024 EPS fell short of forecasts due to insufficient growth in the Insurance - Surety & Title segment, despite a strong revenue performance in the quarter.

1. **Revenue and Net Income Growth**: NMIH's revenue for the quarter was $166.5 million, with a net income of $86.17 million. This represents a significant increase from the previous quarter, indicating robust business performance.

2. **EPS Misses Expectations**: Despite the strong revenue and net income, the EPS fell short of expectations, missing analyst estimates by 1.6%. This suggests that the cost structure or operational efficiency did not match the expectations of the analysts who had forecasted the earnings.
3. **Non-Core Costs**: The company's non-operating costs were substantial, totaling $140.2 million. These costs, which are not directly related to the company's core insurance operations, likely had a significant impact on the net income, thereby affecting the EPS.
4. **Market Position and Growth Prospects**: NMIH's stock is considered an attractive investment due to its low P/E ratio compared to the market. However, the company's growth has been insufficient to meet market expectations, which could be a contributing factor to the EPS shortfall.

In conclusion, while NMIH showed strong revenue and net income growth in Q3 2024, the shortfall in EPS can be attributed to a combination of non-core costs and insufficient growth in the core business segment, which together did not meet the heightened expectations of the analysts.