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MoneyGram (MGI) Q4 Earnings Miss Estimates on Higher Costs
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MoneyGram International Inc. reported fourth-quarter earnings of 16 cents per share, which missed the Zacks Consensus Estimate of 17 cents by 5.9%. Earnings remained flat with the prior-year quarter.
For 2016, the company’s adjusted EBITDA was $264.6 million, up 11% on a constant currency basis.
MoneyGram’s total revenue for the reported quarter was $416.2 million, up 3% on a reported basis and 4% on a constant currency basis. Both increases were on a year-over-year basis.
Total operating expenses increased 2.3% year over year to $393.3 million in the fourth quarter. For 2016, the metric totaled $1.5 billion, up 1.2% over 2015.
Quarterly Segment Details
Global Funds Transfer segment: Revenues were up 10.2% to $395.5 million. Growth in the segment’s revenues was driven by a 9.3% improvement in money transfer revenues to $369.9 million and a 1% increase bill payment revenues to $25.6 million. Total commissions expense rose 0.3% to $198.3 million. Operating margin of 6.5% expanded 330 basis points (bps) from the prior-year quarter. Digital money transfer revenues, which comprised 14% of the total money transfer revenue, jumped 16% year over year.
The Financial Paper Products segment: This segment reported total revenue of $19.6 million, up 0.3% year over year. The upside was driven by 0.3% rise in Official check revenues as the Money order revenues remained flat year over year at $12.6 million. Total commissions expense increased 1% to $1.2 million. Operating margin of 25%, however, contacted 140 bps from the prior-year quarter.
Financial Update:
As of Dec 31, 2016 MoneyGram had cash and cash equivalents of $157.2 million, down 4.4% from year-end 2015.
The company’s total assets grew 2% to $4.6 billion from year-end 2015.
The company exited the fourth quarter with $915 million of outstanding debt, down 3% from year-end 2015.
Adjusted Free Cash Flow was $96.7 million at the end of 2016, up $96.3 million from the prior year.
Moneygram International, Inc. Price, Consensus and EPS Surprise
The bottom line at Discover Financial Services (DFS - Free Report) , MasterCard Incorporated (MA - Free Report) and Visa Inc. (V - Free Report) beat their respective Zacks Consensus Estimate for the quarter ending Dec 31, 2016.
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MoneyGram (MGI) Q4 Earnings Miss Estimates on Higher Costs
MoneyGram International Inc. reported fourth-quarter earnings of 16 cents per share, which missed the Zacks Consensus Estimate of 17 cents by 5.9%. Earnings remained flat with the prior-year quarter.
For 2016, the company’s adjusted EBITDA was $264.6 million, up 11% on a constant currency basis.
MoneyGram’s total revenue for the reported quarter was $416.2 million, up 3% on a reported basis and 4% on a constant currency basis. Both increases were on a year-over-year basis.
Total operating expenses increased 2.3% year over year to $393.3 million in the fourth quarter. For 2016, the metric totaled $1.5 billion, up 1.2% over 2015.
Quarterly Segment Details
Global Funds Transfer segment: Revenues were up 10.2% to $395.5 million. Growth in the segment’s revenues was driven by a 9.3% improvement in money transfer revenues to $369.9 million and a 1% increase bill payment revenues to $25.6 million. Total commissions expense rose 0.3% to $198.3 million. Operating margin of 6.5% expanded 330 basis points (bps) from the prior-year quarter. Digital money transfer revenues, which comprised 14% of the total money transfer revenue, jumped 16% year over year.
The Financial Paper Products segment: This segment reported total revenue of $19.6 million, up 0.3% year over year. The upside was driven by 0.3% rise in Official check revenues as the Money order revenues remained flat year over year at $12.6 million. Total commissions expense increased 1% to $1.2 million. Operating margin of 25%, however, contacted 140 bps from the prior-year quarter.
Financial Update:
As of Dec 31, 2016 MoneyGram had cash and cash equivalents of $157.2 million, down 4.4% from year-end 2015.
The company’s total assets grew 2% to $4.6 billion from year-end 2015.
The company exited the fourth quarter with $915 million of outstanding debt, down 3% from year-end 2015.
Adjusted Free Cash Flow was $96.7 million at the end of 2016, up $96.3 million from the prior year.
Moneygram International, Inc. Price, Consensus and EPS Surprise
Moneygram International, Inc. Price, Consensus and EPS Surprise | Moneygram International, Inc. Quote
Zacks Rank
Currently, MoneyGram carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Sector Participants
The bottom line at Discover Financial Services (DFS - Free Report) , MasterCard Incorporated (MA - Free Report) and Visa Inc. (V - Free Report) beat their respective Zacks Consensus Estimate for the quarter ending Dec 31, 2016.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>