MBIA Vaults to a Big Surprise

Source: http://www.zacks.com/stock/news/14122/MBIA+Vaults+to+a+Big+Surprise
Posted on Friday, August 8th, 2008 | In Market Commentary, Stocks to Watch

Contributed by: Zacks Market Commentaries (http://www.zacks.com/) -

Financial insurer MBIA (MBI) blew the doors off earnings estimates. Adfter posting a 250 percent loss in its March quarter, the firm’s just-released second quarter earnings brought in $7.14 per share, when the Zacks consensus had been expecting -$1.16 per share.

MBIA cited a $3.3 billion gain in insured credit derivatives in the quarter. But also noted was that losing triple-A status from Moody’s and S&P will hinder growth going forward. As of around mid-day on the NYSE, MBI shares are up over 7 percent on the news, trading nearly $8.88 on the date 08-08-08 today.

We expect a research report on MBIA from Zacks senior insurance industry analyst Eric Rothmann in the near future. Following the company’s dismal first quarter results, the analyst reiterated his Sell rating on MBI shares, saying, “[C]ontinued concerns for further deterioration in the mortgage markets should not bode well for results over the next several quarters.”

“MBI” Free Stock Analysis: Buy? Sell? Hold?
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