MBIA Inc. Pops on Huge EPS Beat (MBI)

MBIA Inc.

reports Q2 EPS of $6.32 versus estimates of $0.62 loss. MBIA Inc.'s Adjusted Book Value, a non-GAAP measure, was $35.76 per share at June 30, 2010 compared with $36.01 per share at March 31, 2010. During the second quarter of 2010, MBI repurchased $2 million par amount of the preferred shares of MBIA Corp. for approximately $160 thousand and approximately $17 million of its 9.375% Notes due February 2011 at par. The company repurchased approximately 3.2 million shares of its common stock at an average price of $6.10 during the second quarter. As of June 30, 2010, approximately $84 million of repurchase authorization remained available under the company's $1.0 billion share buyback program. "In the second quarter, we saw both our paid losses and new delinquencies on insured RMBS exposures continue to decline," said MBIA Inc. President and Chief Financial Officer Chuck Chaplin. "In addition, more market participants are recognizing that many of the loans in these securitizations should never have been in them in the first place, and that the seller/servicers must repurchase them. After the quarter's close, we reduced our exposure to multi-sector CDO-squareds by about 50 percent, and settled a small portion of outstanding putback receivables. The net incurred loss on insured exposures demonstrates that credit stress continues to be a reality, but the volatility of losses appears to be declining." Shares of MBI are higher by 11.32% in the after-hours.