MBIA Reports 57% Surge In Q1 Earnings, Sales Jump 150+%

Shares of MBIA

surged more than five percent higher in Monday's after-hours trading session as the company announced better-than-expected quarterly earnings. Revenue for the first quarter came in at $577 million, up 163 percent from the same quarter last year. This figure also topped the analyst estimate of $93.45 million. However, investors should note that only two analysts are covering the stock. The vast majority of this sharp move higher iin sales is an increase on unrealized gains for insured derivatives. EPS for the quarter was $1.32 versus $0.84 for the same quarter last year, about 57 percent growth. The jump in profit is largely a response to significantly higher revenue. In the earnings press release, CFO Chuck Chaplin commented, “The first quarter represented another milestone on our journey to financial stability and re-entry into the municipal finance market. In March, National Public Finance Guarantee Corp. achieved a rating upgrade to ‘AA-' from Standard & Poor's and today added a ‘AA+' rating from the Kroll Bond Rating Agency. National is the largest bond insurer exclusively focused on domestic public finance and the Double-A ratings will enable National to begin insuring bonds in the municipal market. We are looking forward to writing new business and adding value for issuers, investors and our shareholders.” Shares of MBIA were last trading up 4.33 percent to $12.46.