ASSURED GUARANTY Reports Second Quarter Earnings for 2023
August 28, 2023
☀️Earnings Overview
On August 8, 2023, ASSURED GUARANTY ($NYSE:AGO) reported their second quarter fiscal year 2023 earnings results. The total revenue for the quarter was estimated at USD 357.0 million – a significant increase from the 77.0 million reported in the same period of the previous year. Net income also saw a dramatic improvement from -47.0 million to USD 125.0 million.
Share Price
The stock opened at $61.7 and closed at $62.6, a 0.2% decrease from the previous closing price of $62.8. This report indicates an overall decrease in the company’s performance despite a successful first quarter. This indicates that the company is still able to command higher prices for their products and services.
Additionally, they managed to reduce their operating expenses by 3%. Despite this, the company still showed signs of continued success as evidenced by their increasing gross margin and decreasing operating expenses. 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 |
| 914 | 309 | 34.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Assured Guaranty. More…
| Operations | Investing | Financing |
| -249 | 554 | -380 |
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 |
| 16.85k | 11.4k | 89.65 |
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 |
| -1.5% | – | 46.5% |
| FCF Margin | ROE | ROA |
| -27.2% | 5.1% | 1.6% |
Analysis
At GoodWhale, we recently performed an analysis of ASSURED GUARANTY‘s financials. Our Star Chart gave the company an intermediate health score of 4/10 considering its cashflows and debt. This score indicates that the company is likely to pay off debt and fund future operations. In terms of performance, ASSURED GUARANTY had strong dividend metrics, medium asset metrics, and weak growth and profitability metrics. Based on these findings, we classified the company as a ‘cow’ – a type of company with a track record of paying out consistent and sustainable dividends. Given the company’s financials and performance metrics, investors looking for a reliable source of dividend income may be interested in ASSURED GUARANTY. 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 reported strong financial results for its second quarter of 2023, with total revenue increasing from USD 77.0 million to USD 357.0 million and net income improving from a loss of -47.0 million to a gain of USD 125.0 million. Investors should be encouraged by these results, which reflect the company’s continued success despite the difficult economic climate. Going forward, investors should closely monitor ASSURED GUARANTY’s performance in order to gain insight into how the company is capitalizing on its growth opportunities.
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