Earnings to watch: NMI Holdings (NMIH) reports Q3 results tomorrow

What happened

Mortgage insurance provider NMI Holdings is due to report its third-quarter results this Thursday after the market closes. Analysts expect revenue to grow 6.7% year over year; last quarter, the company reported revenue of $187.9 million, up 8.1%, and beat revenue and earnings-per-share expectations.

Confirmed

Global impact / market context

The report will show whether NMIH’s revenue growth is keeping pace with expectations and whether it can repeat last quarter’s results above analysts’ forecasts. For investors, revenue and earnings updates can change views of the insurer’s ability to grow income and support its business.

Analyst inference

Analysts have generally reaffirmed their estimates over the past 30 days, while the article says NMIH has missed revenue estimates multiple times in the last two years. Two property and casualty insurers reported revenue growth, but those results do not establish NMIH’s outcome.

Analyst inference

What to watch

1. Check NMIH’s reported revenue against the 6.7% year-over-year growth analysts expect; a shortfall or stronger result would indicate a different growth pace. Analyst inference
2. Compare reported earnings per share with analysts’ expectations, since the article says NMIH beat that measure last quarter but provides no forecast for this quarter. Analyst inference
3. Review management’s comments, if reported, for explanations of revenue growth or changes in costs; the supplied article gives no cost outlook or company guidance. Analyst inference

Evidence

• stockstory.org