Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

MoneyGram International Inc. (MGI - Analyst Report) announced a strategic alliance with Dollar General in order to expand its money transfer network in the US. Dollar General is a leading retail brand that operates as a chain of convenience and low-priced products stores across the US.

Accordingly, MoneyGram added 10,000 locations of Dollar General, thereby strengthening its money transfer network by over 50,000 locations in the US. Through these locations, the company offers money remittances to over 197 countries and territories.

The latest addition of Dollar General has also helped MoneyGram achieve a milestone of 310,000 global agent locations, surging 16% in a year’s time. Growth was primarily driven by additions in Russia, Africa and Portugal, among others. The company successfully procured about 43,000 agent locations in 2012. MoneyGram’s agents primarily include retailers, international post offices and financial institutions.

Money Transfer Biz Reflects Growth

MoneyGram continues to bolster its position as one of the leading money transfer companies in the world by constantly expanding its payment network via alliances. The effects of its consistent growth strategies were also visible in the company’s recently announced fourth-quarter 2012 results.

MoneyGram earned 27 cents per share in the fourth quarter of 2012, which came in a penny higher than the Zacks Consensus Estimate. However, reported earnings soared from the year-ago quarter’s earnings of 4 cents a share.

Higher money transfer transaction volumes as well as higher fee and other revenues drove the top line that grew 10.1%, while lower interest expenses helped the bottom line and free cash flow. However, lower investment income along with higher operating and commission expenses deteriorated the margins.

Simultaneously, MoneyGram is also enhancing its brand awareness by developing user-friendly payment solutions that suit the new market trends. In this regard, the company offers various self-service products such as mobile, kiosk and online money transfer payment processes. These efforts are not only creating demand for the global remittances but also boosting the company’s brand value.

Others

MoneyGram carries a Zacks Rank #3 (Hold). Other strong performers in the financial sector include Financial Engines Inc. (FNGN - Snapshot Report),Fleetcor Tech Inc. (FLT - Snapshot Report) and Bank of Montreal (BMO - Snapshot Report), all of which carry a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%