The 10-second takeaway
For the quarter ended Sep. 30 (Q3), MBIA crushed expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share shrank significantly.
Margins shrank across the board.
MBIA booked revenue of $225.0 million. The one analyst polled by S&P Capital IQ wanted to see sales of $106.3 million on the same basis. GAAP reported sales were 75% lower than the prior-year quarter's $1.12 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 -$0.32. The one earnings estimate compiled by S&P Capital IQ predicted $0.18 per share. GAAP EPS of $0.04 for Q3 were 98% lower than the prior-year quarter's $2.26 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 42.0%, 3,990 basis points worse than the prior-year quarter. Operating margin was 14.6%, 5,990 basis points worse than the prior-year quarter. Net margin was 2.5%, 3,720 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $105.1 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $519.3 million. The average EPS estimate is -$1.53.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 549 members out of 1,005 rating the stock outperform, and 456 members rating it underperform. Among 272 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 122 give MBIA a green thumbs-up, and 150 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 $20.00.
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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. The Motley Fool has no positions in the stocks mentioned above. 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.