MBIA Inc. (MBI) Beats on Revenue, Misses on EPS

MBIA Inc. (MBI) gained $0.12 to $9.00 in after-hours trading after it reported fiscal results for the fourth quarter.

In its quarterly report, the insurer said it earned $0.10 per share, below the $0.11 per share analysts were expecting. Revenue fell 53.1% yoy to $215 million, but well-above views for $156.9 million.

For the year ended December 31, 2014, the company said it recorded consolidated net income of $569 million, or $2.76 p/sh compared with consolidated net income of $250 million, or $1.29 p/sh, for the full year 2013. Adjusted Book Value (ABV) per share was $24.87 as of Dec. 31, 2014 compared with $24.05 as of December 31, 2013.

“This is the third quarter in a row in which we saw positive operating income, cash flow and ABV growth, and the first full year of positive earnings since before the financial crisis,” said in a statement MBIA Inc. President and CFO Chuck Chaplin. “Our expense reduction efforts are paying off.”

On valuation measures, MBIA Inc. shares, which currently have an average 3-month trading volume of 1.9 million shares, trade at a trailing-12 P/E of 2.63, a forward P/E of 23.37 and a P/E to growth ratio of 0.31. The median Wall Street price target on the name is $16.25 with a high target of $20.00. Currently ticker boasts 2 ‘Buy’ endorsements, compared to 1 ’Hold’ and no ‘Sell’.

Profitability-wise, MBI has a t-12 profit and operating margin of 44.48% and 77.92%, respectively. The $1.72 billion market cap company reported $729 million in cash vs. $1.81 billion in debt in its most recent quarter.

MBI currently prints a one year loss of about 33% and a year-to-date loss of around 6%.

The chart below shows where the equity has traded over the last 52 weeks.

MBIA Inc. provides financial guarantee insurance services for the public and structured finance markets and asset management advisory services in the U.S and internationally. The company was founded in 1973 and is headquartered in Armonk, New York.

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