MBIA Inc Down 0.57% To $8.72 After Earnings Miss

MBIA Inc (MBI) missed earnings estimates for Q2 2023 this afternoon.

The consensus among analysts for MBIA Inc was for an earnings per share (EPS) loss of $0.16 per share. The firm failed to meet those projections, reporting an EPS loss of $0.45 per share, a negative surprise of $0.29 (-181%). Profits rose 52% year-over-year after reporting an EPS loss of $0.93 per share in its year-ago quarter. The positive growth rate signals that the Financial Services company is performing well amid recent economic conditions.

Analyst projections for MBIA Inc revenue came in at a consensus of $7.7 million. Second-Quarter revenues surpassed estimates for $28 million by $20.3 million (265%). The company achieved 155% growth year-over-year compared to the firm's revenue of $11 million from the year-ago quarter. The lower earnings growth relative to revenue signals MBIA Inc has not been able to improve its profit margin.

The stock is down 0.57% to $8.72 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

Wall Street Analysts had an average rating of Strong Buy on the stock prior to the report.

Trading in the five days leading up to the report earned MBIA Inc a Bearish Sentiment Rank from InvestorsObserver.

MBIA Inc has performed poorly during the past few months, garnering a low Long-Term Technical Rank by InvestorsObserver of 12, putting MBIA Inc in the bottom 25% of stocks. The firm was recently trading at a 52-week low of $7.33 on May 11, 2023 and set a 52-week high on March 1, 2023 at $14.

MBIA Inc provides financial guaranty insurance for municipal bonds and asset-backed securities in the United States and internationally. It offers an unconditional guarantee to repay the principal and interest on these securities if the issuer defaults. MBIA insures bonds sold in the primary and secondary markets, as well as those held in unit investment trusts and by mutual funds. It operates in three segments: the United States public finance insurance, corporate, and international & structured finance insurance. U.S. public finance insurance portfolio is managed through National Public Finance Guarantee Corporation. International & structured finance insurance business is primarily managed through MBIA Insurance Corporation and its subsidiary.