MBIA Vaults to a Big Surprise

Financial insurer MBIA (MBI) blew the doors off earnings estimates.  After posting a 250 percent earnings miss 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 gained $3.3 billion 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."

Read the full analyst report on MBI