ASSURED GUARANTY Reports Q1 FY2023 Earnings Results on May 9, 2023
June 20, 2023
☀️Earnings Overview
On May 9, 2023, ASSURED GUARANTY ($NYSE:AGO) reported its earnings results for the first quarter of FY2023, which ended on March 31, 2023. The company experienced a 17.9% year-over-year decrease in total revenue, with USD 230.0 million earned. Nonetheless, net income rose 22.7% year-over-year to USD 81.0 million.
Price History
At the close of trading on Tuesday, the stock opened at $52.6 and closed steady at that same price. This represented a 0.5% decrease from the previous day’s closing price of $52.8. The company attributed the strong results to cost-cutting measures and investments in new technology. All in all, ASSURED GUARANTY’s Q1 FY2023 earnings results were encouraging and indicate that the company is well-positioned for future success. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Assured Guaranty. More…
| Total Revenues | Net Income | Net Margin |
| 634 | 138 | 21.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Assured Guaranty. More…
| Operations | Investing | Financing |
| -2.48k | 1.74k | 612 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Assured Guaranty. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 16.78k | 11.36k | 88.01 |
Key Ratios Snapshot
Some of the financial key ratios for Assured Guaranty are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -9.2% | – | 40.5% |
| FCF Margin | ROE | ROA |
| -391.0% | 3.1% | 1.0% |
Analysis
At GoodWhale, we analyzed the financials of ASSURED GUARANTY, and at Star Chart, we classified them as a ‘cow’, a type of company with a track record of paying out consistent and sustainable dividends. This type of company may be attractive to investors that seek to benefit from the steady returns of a dividend-paying stock while also diversifying their portfolio. Following our analysis, we concluded that ASSURED GUARANTY is strong in dividend, medium in asset and weak in growth and profitability. Additionally, their health score of 3/10 is an indication that they may not be able to withstand a crisis without the risk of bankruptcy. Despite this, ASSURED GUARANTY has been able to maintain a consistent dividend history which may be appealing to investors who prioritize this type of stability. More…
Peers
The Company’s principal subsidiaries include Assured Guaranty Municipal Corp, which provides financial guarantees for municipal bonds, and Assured Guaranty Re Ltd, which provides reinsurance for credit enhancement providers. The Company’s competitors include MBIA Inc, Menora Mivtachim Holdings Ltd, American Overseas Group Ltd, among others.
– MBIA Inc ($NYSE:MBI)
MBIA Inc is a holding company that, through its subsidiaries, provides financial guarantee insurance services in the United States and internationally. The company has a market cap of $547.9 million and a return on equity of 20.66%. MBIA Inc operates in two segments: Insurance Services and Financial Services. The Insurance Services segment provides financial guarantees for bonds, notes, and other obligations issued by municipalities, utilities, school districts, housing authorities, and various other governmental entities and public finance sectors. The Financial Services segment offers investment management, loan servicing, and real estate services.
– Menora Mivtachim Holdings Ltd ($OTCPK:MNRHF)
Menora Mivtachim Holdings Ltd is an Israeli conglomerate with interests in insurance, banking, and investment. The company has a market capitalization of 1.2 billion as of 2022 and a return on equity of 9.76%. Menora Mivtachim Holdings is a publicly traded company on the Tel Aviv Stock Exchange. The company was founded in 1934 and is headquartered in Tel Aviv, Israel.
– American Overseas Group Ltd ($OTCPK:AOREF)
AOG is a Bermuda-based holding company engaged in the insurance and reinsurance businesses through its subsidiaries. The Company’s segments include Property and Casualty, which provides insurance and reinsurance products for commercial and personal lines of business; Specialty, which provides insurance and reinsurance products for specialty lines of business, such as professional liability, surety, political risk, and medical malpractice; and Life, which provides life insurance products.
Summary
ASSURED GUARANTY released its earnings report for the first quarter of FY2023, with total revenue of USD 230.0 million, a 17.9% decrease year-over-year.
However, net income increased 22.7% from the same period last year, amounting to USD 81.0 million. These results indicate that despite the decreased revenue, the company has seen a positive return on its investments. For potential investors, this could be an indication of good returns in the future. However, further analysis of ASSURED GUARANTY’s financials and investment strategy is recommended before investing.
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