Maiden Holdings Ltd. Earnings: Here’s Why Shares are Down Now

Maiden Holdings, Ltd. (NASDAQ:MHLD) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.49%.

Maiden Holdings, Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 3.7% to $0.28 in the quarter versus EPS of $0.27 in the year-earlier quarter.

Revenue: Rose 17.56% to $536.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Maiden Holdings, Ltd. reported adjusted EPS income of $0.28 per share. By that measure, the company beat the mean analyst estimate of $0.26. It beat the average revenue estimate of $518.08 million.

Quoting Management: Commenting on the Company’s earnings, Art Raschbaum, Chief Executive Officer of Maiden, said: “Maiden’s results for the second quarter and the first six months of 2013 reflect improved underwriting performance, no adverse impact from the catastrophe events of the second quarter, strong growth from the AmTrust segment reflecting a favorable North American pricing environment, and an annualized return on common shareholders’ equity of 10% for the first half of the year. Over time, we expect rising interest rates to benefit the Company’s long-term earnings run rate as we deploy cash and reinvest assets at higher yields. Along with a favorable insurance pricing environment in North America and rising interest rates, we expect that Maiden’s profitability will further benefit from expected repayment of the 14% TRUPS in January 2014.”

Key Stats (on next page)…

Revenue increased 3.43% from $518.92 million in the previous quarter. EPS decreased 3.45% from $0.29 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.31 to a profit $0.3. For the current year, the average estimate has moved down from a profit of $1.17 to a profit of $1.16 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)