Earnings Preview: MBIA

May.11.09 | About: MBIA Inc. (MBI)

MBIA (NYSE:MBI) is slated to report Q1 earnings before the market open on Tuesday, May 12 with a conference call scheduled for 8:00 am ET.


Analysts are looking for EPS of (33c) on revenue of $322.72M. The consensus range is ($2.06)-47c for EPS, and $313.65M-$331.80M for revenue, according to First Call. Last week MBIA (MBI) chairman and CEO Jay Brown gave up his chairman role, and MBIA chose one of its directors, Daniel Kearney, as its non-executive chairman. Kearney is a former executive VP of Aetna (NYSE:AET). The Wall Street Journal recently reported that many people feel MBIA will become insolvent, but regulators think the company will be able to meet its obligations. In March, MBIA split its bond insurance unit into two companies. MBIA's municipal bond insurance business was separated from its mortgage-backed bond insurance activities and placed in a different company. Several financial companies complained that the move put them at a disadvantage, and a number of hedge funds and mutual funds have sued MBIA a a result.

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Also in March, Warburg Pincus raised its stake in the bond insurer to 30.44% from 23.67%.