The 10-second takeaway
For the quarter ended June 30 (Q2), MBIA crushed expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share improved significantly.
Gross margins expanded, operating margins improved, and net margins contracted.
MBIA tallied revenue of $251.0 million. The one analyst polled by S&P Capital IQ predicted a top line of $129.9 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $104.0 million.
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 -$0.57. The one earnings estimate compiled by S&P Capital IQ forecast $0.20 per share. GAAP EPS of $2.98 for Q2 were 338% higher than the prior-year quarter's $0.68 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 92.3%, 6,250 basis points better than the prior-year quarter. Operating margin was 84.3%, 13,330 basis points better than the prior-year quarter. Net margin was 57.8%, 7,390 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $120.0 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $789.0 million. The average EPS estimate is -$0.28.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 552 members out of 1,010 rating the stock outperform, and 458 members rating it underperform. Among 271 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 113 give MBIA a green thumbs-up, and 158 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.
- Add MBIA to My Watchlist.