MoneyGram International Inc. 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.

 

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.

 

 

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%.

 

 

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.

 

 

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

 

 

Currently, MoneyGram carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

 

The bottom line at American Express Co. (AXP Quick QuoteAXP - Free Report) , MasterCard Incorporated (MA Quick QuoteMA - Free Report) and Visa Inc. (V Quick QuoteV - Free Report) beat their respective Zacks Consensus Estimate for the quarter ending as of Sep 30, 2016.