It has been about a month since the last earnings report for MoneyGram . Shares have lost about 2.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is MoneyGram due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
MoneyGram Q4 Loss, Wider Than Expected
MoneyGram International reported fourth-quarter loss of 2 cents per share, wider than the Zacks Consensus Estimate of a loss of 1 cent. In the year-ago quarter, the company had reported earnings of 20 cents per share.
MoneyGram’s total revenues of $345.8 million were down 15% on a reported basis and 14% on constant currency, year over year. Revenues missed the Zacks Consensus Estimate by 0.14%.
Fees and other revenues decreased 17% to $332 million, while investment revenues increased 60% to $14 million.
Adjusted EBITDA was $60.0 million, down 15.8% year over year, adjusted EBITDA margin was 17.4% and remained relatively flat year over year.
Total operating expenses declined by 28% year over year to $332.1 million.
Segment Details
In the Global Funds Transfer segment, money transfer revenues decreased 17.3% year over year to $319.7 million. Bill payment revenues also decreased 16.8% year over year to $16.8 million.
The Financial Paper Products segment reported total revenues of $26.1 million, up 21% year over year due to a 5.4% uptick in money order revenues and a 44% increase in official check revenues. Adjusted operating margin improved 870 basis points from the year-ago quarter to 31.8%.
Liquidity
As of Dec 31, 2018, MoneyGram had cash and cash equivalents of $145.5 million, down 23.5% year over year. The company’s total assets were $4.3 billion, down 10% from year-end 2017 levels. The company exited the second quarter with $902 million of outstanding debt, down 0.7% from year-end 2017 levels.
Adjusted free cash flow for 2018 was $21.1 million, down 18% year over year.
2019 Guidance
For full-year 2019, the company is projecting revenues to decline approximately 2% to 4% and adjusted EBITDA is expected to decline approximately 8% to 12%, both on a constant currency basis.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
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It has been about a month since the last earnings report for MoneyGram . Shares have lost about 2.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is MoneyGram due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
MoneyGram Q4 Loss, Wider Than Expected
MoneyGram International reported fourth-quarter loss of 2 cents per share, wider than the Zacks Consensus Estimate of a loss of 1 cent. In the year-ago quarter, the company had reported earnings of 20 cents per share.
MoneyGram’s total revenues of $345.8 million were down 15% on a reported basis and 14% on constant currency, year over year. Revenues missed the Zacks Consensus Estimate by 0.14%.
Fees and other revenues decreased 17% to $332 million, while investment revenues increased 60% to $14 million.
Adjusted EBITDA was $60.0 million, down 15.8% year over year, adjusted EBITDA margin was 17.4% and remained relatively flat year over year.
Total operating expenses declined by 28% year over year to $332.1 million.
Segment Details
In the Global Funds Transfer segment, money transfer revenues decreased 17.3% year over year to $319.7 million. Bill payment revenues also decreased 16.8% year over year to $16.8 million.
The Financial Paper Products segment reported total revenues of $26.1 million, up 21% year over year due to a 5.4% uptick in money order revenues and a 44% increase in official check revenues. Adjusted operating margin improved 870 basis points from the year-ago quarter to 31.8%.
Liquidity
As of Dec 31, 2018, MoneyGram had cash and cash equivalents of $145.5 million, down 23.5% year over year. The company’s total assets were $4.3 billion, down 10% from year-end 2017 levels. The company exited the second quarter with $902 million of outstanding debt, down 0.7% from year-end 2017 levels.
Adjusted free cash flow for 2018 was $21.1 million, down 18% year over year.
2019 Guidance
For full-year 2019, the company is projecting revenues to decline approximately 2% to 4% and adjusted EBITDA is expected to decline approximately 8% to 12%, both on a constant currency basis.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>