MoneyGram International Inc. posted first-quarter loss of 6 cents per share, missing the Zacks Consensus Estimate by 175%. In the year-ago quarter, the company reported earnings of 15 cents per share.
MoneyGram’s total revenue for the reported quarter was $315 million, declined 17% year over year (or 15% on constant currency) and missed the Zacks Consensus estimate by 4%.
Among the components of revenues, fees and other revenues decreased 69% to $301 million, while investment revenues increased 4.5% to $14.4 million.
Adjusted EBITDA of $50.1 million declined 25% year over year.
Adjusted EBITDA margin of 15.9% declined 160 basis points year over year.
Total operating expenses declined by 18% year over year to $306.8 million.
MoneyGram International Inc. Price, Consensus and EPS Surprise
Segment Details
In the Global Funds Transfer segment, money transfer revenues decreased 19% year over year to $273.3 million. Bill payment revenues were also down by 24% year over year to $15.9 million.
Total digital solutions, which include MoneyGram.com, represented 16% of total money transfer revenue.
The Financial Paper Products segment reported total revenue of $26.2 million, grew 16% year over year due to a 3.7% uptick in money order revenues and 34% increase in official check revenues. Adjusted operating margin improved 650 basis points from the year-ago quarter to 31.3%.
Liquidity
As of Mar 31, 2019, MoneyGram had cash and cash equivalents of $129.9 million, down 10.7% from year end 2018 levels. The company’s total assets were $4.4 billion, up 1.6% from year end 2018 levels. The company exited the first quarter with $899 million of outstanding debt, almost unchanged from year end 2018 levels.
Adjusted Free Cash Flow for the quarter was $13.3 million, down 55% year over year.
Guidance Affirmed
The company reiterated its earlier issued guidance which calls for revenue to decline 2% to 4% on a constant-currency basis. Adjusted EBITDA is expected to decline approximately 8% to 12% on a constant-currency basis.
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.
Zacks Rank and Other Stocks
Currently, MoneyGram holds a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are FleetCor Technologies, Inc. , Worldpay, Inc. and Green Dot Corp. (GDOT - Free Report) . Each of these stocks carries a Zacks Rank #2 (Buy) and have average four-quarter positive surprise of 1.71%, 5.2% and 17.4%, respectively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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MoneyGram International Inc. posted first-quarter loss of 6 cents per share, missing the Zacks Consensus Estimate by 175%. In the year-ago quarter, the company reported earnings of 15 cents per share.
MoneyGram’s total revenue for the reported quarter was $315 million, declined 17% year over year (or 15% on constant currency) and missed the Zacks Consensus estimate by 4%.
Among the components of revenues, fees and other revenues decreased 69% to $301 million, while investment revenues increased 4.5% to $14.4 million.
Adjusted EBITDA of $50.1 million declined 25% year over year.
Adjusted EBITDA margin of 15.9% declined 160 basis points year over year.
Total operating expenses declined by 18% year over year to $306.8 million.
MoneyGram International Inc. Price, Consensus and EPS Surprise
Segment Details
In the Global Funds Transfer segment, money transfer revenues decreased 19% year over year to $273.3 million. Bill payment revenues were also down by 24% year over year to $15.9 million.
Total digital solutions, which include MoneyGram.com, represented 16% of total money transfer revenue.
The Financial Paper Products segment reported total revenue of $26.2 million, grew 16% year over year due to a 3.7% uptick in money order revenues and 34% increase in official check revenues. Adjusted operating margin improved 650 basis points from the year-ago quarter to 31.3%.
Liquidity
As of Mar 31, 2019, MoneyGram had cash and cash equivalents of $129.9 million, down 10.7% from year end 2018 levels. The company’s total assets were $4.4 billion, up 1.6% from year end 2018 levels. The company exited the first quarter with $899 million of outstanding debt, almost unchanged from year end 2018 levels.
Adjusted Free Cash Flow for the quarter was $13.3 million, down 55% year over year.
Guidance Affirmed
The company reiterated its earlier issued guidance which calls for revenue to decline 2% to 4% on a constant-currency basis. Adjusted EBITDA is expected to decline approximately 8% to 12% on a constant-currency basis.
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.
Zacks Rank and Other Stocks
Currently, MoneyGram holds a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are FleetCor Technologies, Inc. , Worldpay, Inc. and Green Dot Corp. (GDOT - Free Report) . Each of these stocks carries a Zacks Rank #2 (Buy) and have average four-quarter positive surprise of 1.71%, 5.2% and 17.4%, respectively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Click here to see these breakthrough stocks now >>
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 >>
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