Radian (NYSE:RDN) Stuns Market with Huge Loss

The quarterly loss of Radian (NYSE:RDN) of $8.55 a share shocked the market today, as shares in the company dropped on the news.

Losses were almost eight times what analysts were looking for, suggesting a huge disconnect.

Radian lost $1.1 billion during the quarter, while analysts had been expecting losses of $155.9 million, or $1.18 a share.

Even though the core business of Radian improved, derivatives hammered the company results, as well as other non-core financial instruments.

CEO S.A. Ibrahim commented on the performance, saying, "It is important to note that the establishment of a valuation allowance in the quarter does not have any impact on statutory capital, risk-to-capital ratio, liquidity or business operations, and it does not reflect a change in our view of Radian's long-term financial outlook. We are confident that our capital, financial flexibility and solid customer base position Radian for future success."

Spin as he tries, by any measure the quarter was a disaster for the company and its shareholders.

Radian was trading at $7.07, down $0.28, or 3.74 percent, as of 2:06 PM EST. Shares had been down over 10 percent earlier in the trading day, and it's surprising they've been as resilient as they have been when taking into consideration the numbers.