Markets
AXP

MoneyGram (MGI) Q3 Earnings Beat Estimates, View Intact

A generic image of a pen on a chart
Credit: Shutterstock photo

MoneyGram International Inc.MGI reported third-quarter earnings of 25 cents per share, beating the Zacks Consensus Estimate of 21 cents per share.

MoneyGram's total revenue for the reported quarter was $383.1 million, up 4% on a reported basis and 5% on a constant currency basis.

Fees and other revenues increased 3.4% to $378.5 million, while investment revenues surged 64.3% to $4.6 million.

FindTheCompany | Graphiq

The company's adjusted EBITDA came in at $68.7 million, up 5% on a reported basis and 8% on a constant currency basis.

Total operating expenses increased 4.9% year over year to $356.9 million.

Segment Details

In the Global Funds Transfer segment, money transfer revenues increased 4% on a reported basis and 5% on a constant currency basis to $339.6 million. Non-U.S. revenues climbed 4% on a reported basis and 6% on a constant currency led primarily by Europe but offset by headwinds in the Middle East and parts of Africa. U.S. Outbound revenue grew 8% on both reported and constant currency basis led by sends to Latin America, parts of Asia and Africa.

Digital money transfer transactions, which increased 4% year on year, represented 15% of the total money transfer transaction. Digital money transfer revenues, which grew 12% year on year, accounted for 13% of the total money transfer revenue. The results reflect greater adoption of its new moneygram.com.

The Financial Paper Products segment reported total revenue of $18.9 million, up 7.4% year over year due to a 24% increase in official check revenues. Adjusted operating margin improved 450 basis points from the year-ago quarter to 23.8%.

Liquidity

As of Sep 30, 2016 MoneyGram had cash and cash equivalents of $173.1 million, down 9.7% from $164.5 million at year-end 2015. The company's total assets declined 2% to $4.4 billion from $4.5 billion at year-end 2015. The company exited the third quarter with $937.3 million of outstanding debt, down 0.6% from $942.6 million at year-end 2015.

Year-to-date adjusted free cash flow was $83.6 million, reflecting an increase of $103.6 million from the prior-year period.

Full-Year Outlook

For 2016, the company's expected constant currency revenue growth of 7-9% and constant currency adjusted EBITDA growth of 9-11% are unchanged.

Zacks Rank

Currently, MoneyGram carries a Zacks Rank #3 (Hold). You can see t he complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

MONEYGRAM INTL Price, Consensus and EPS Surprise

MONEYGRAM INTL Price, Consensus and EPS Surprise | MONEYGRAM INTL Quote

Performance of Other Players in the Sector

The bottom line at American Express Co. AXP , MasterCard Incorporated MA and Visa Inc. V beat their respective Zacks Consensus Estimate for the quarter ending as of Sep 30, 2016.

Confidential from Zacks

Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

MONEYGRAM INTL (MGI): Free Stock Analysis Report

AMER EXPRESS CO (AXP): Free Stock Analysis Report

MASTERCARD INC (MA): Free Stock Analysis Report

VISA INC-A (V): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

AXP V MA MGI

Other Topics

Earnings Stocks

Latest Markets Videos