MoneyGram (MGI) Q3 Earnings and Revenues Miss Estimates
MoneyGram International Inc. MGI posted third-quarter loss of 7 cents per share, against the Zacks Consensus Estimate of earnings of 4 cents per share. In the year-ago quarter, the company reported earnings of 8 cents per share.
The company’s total revenues of $324.6 million declined 6.5% year over year and missed the Zacks Consensus estimate by 1.3%.
MoneyGram’s results reflected business decline in the U.S market, partly offset by transaction growth outside of the United States.
MoneyGram International Inc. Price, Consensus and EPS Surprise
MoneyGram International Inc. price-consensus-eps-surprise-chart | MoneyGram International Inc. Quote
Among the components of revenues, fees and other revenues declined 6.7% to $311.2 million, while investment revenues remained almost unchanged at $13.4 million.
Adjusted EBITDA of $51.7 million declined 13.1% year over year.
Adjusted EBITDA margin of 15.9% declined 120 basis points year over year.
Total operating expenses declined by 14% year over year to $308.2 million.
Segments in Detail
In the Global Funds Transfer segment, money transfer revenues decreased 6.8% year over year to $299.6 million. Bill payment revenues were also down by 15.5% year over year to $14.7 million. Operating margin improved 940 basis points from the year-ago quarter to 3.3%.
The Financial Paper Products segment reported total revenues of $25 million, down 2.3% year over year due to a 0.9% decline in money order revenues.
Adjusted operating margin improved 710 basis points from the year-ago quarter to 30.4%.
Liquidity
The company ended the third quarter of 2019 with cash and cash equivalents balance of $119.1 million, down 18.1% year over year.
During the quarter, the company generated adjusted free cash flow of $9.3 million, down 67.8% year over year.
As of Sep 30, 2019, the company’s pension liability was down by 6.4% from the year-end 2018 level to $71.7 million.
2019 Guidance Update
For the fourth quarter of 2019, the company anticipates total revenues of approximately $330 million, and adjusted EBITDA of approximately $50 million.
Zacks Rank and Other Stocks
Currently, MoneyGram carries a Zacks Rank #3 (Hold). Some other stocks worth considering are Moody’s Corp. MCO, Globe Life Inc. GL and Oaktree Specialty Lending Corp. OCSL.
Each of these stocks carries a Zacks Rank #2 (Buy) and have surpassed estimates in three of the four reported quarters with an average positive surprise of 4.51%, 1.53% and 6.63%, respectively.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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