The 10-second takeaway
For the quarter ended March 31 (Q1), MBIA crushed expectations on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share grew.
Margins dropped across the board.
MBIA notched revenue of $206.0 million. The one analyst polled by S&P Capital IQ predicted revenue of $144.0 million on the same basis. GAAP reported sales were 123% lower than the prior-year quarter's -$1.63 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$1.34. The one earnings estimate compiled by S&P Capital IQ predicted $0.14 per share. GAAP EPS were $0.05 for Q1 against -$6.38 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 71.3%, 2,750 basis points worse than the prior-year quarter. Operating margin was 28.5%, 7,550 basis points worse than the prior-year quarter. Net margin was 2.6%, 7,560 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $132.8 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $508.9 million. The average EPS estimate is $0.73.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 556 members out of 1,006 rating the stock outperform, and 450 members rating it underperform. Among 286 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 127 give MBIA a green thumbs-up, and 159 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MBIA is outperform, with an average price target of $15.67.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.