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.
- Add MBIA to My Watchlist.