MoneyGram’s Q3 EPS misses by $0.03, but revenue beats by $5M

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MONEYGRAM ($NASDAQ:MGI): MoneyGram International, Inc. is a global provider of money transfer and payment services. The company’s MoneyGram press release for Q3 reported Non-GAAP EPS of $0.10, missing analysts’ estimates by $0.03. Revenue of $330.8 million also beat estimates by $5 million. MoneyGram offers a variety of money transfer and payment services, including person-to-person money transfers, money orders, and bill payments. MoneyGram has been facing some challenges in recent years, including increased competition from other money transfer providers and a decline in money transfer transactions.

In addition, the company has been investigating potential fraud and compliance issues. Despite these challenges, MoneyGram continues to be a leading provider of money transfer and payment services.

Earnings

In its earning report of FY2022 Q2 ending June 30, MONEYGRAM INTERNATIONAL earned 1281.4M USD in total revenue, lost 3.2M USD in net income. Compared to previous year, 0.2% decrease in total revenue, MONEYGRAM INTERNATIONAL’s total revenue reached from 1217.2M USD to 1281.4M USD in the last 3 years. MONEYGRAM INTERNATIONAL offers money transfer and payment services worldwide. MoneyGram also offers bill payment services in the United States and Canada.

Stock Price

On Tuesday, MoneyGram International stock opened at $10.6 and closed at $10.6, up by 0.2% from last closing price of $10.5. The company’s Q3 EPS missed by $0.03, but revenue beat by $5M. Despite the miss, the company’s stock price was relatively unchanged. This may be because the miss was not as significant as some investors had feared. Overall, news coverage of MoneyGram’s Q3 results has been mostly negative.

However, there are some positive aspects to the company’s performance that investors may be taking into consideration. For example, while EPS missed expectations, revenue came in higher than expected. This suggests that MoneyGram is still generating a lot of revenue, even if it is not necessarily profitable. In the end, whether or not MoneyGram is a good investment will come down to the individual investor’s assessment of the company’s overall financial health and growth prospects.

VI Analysis

The company’s fundamentals reflect its long term potential and according to the VI Star Chart, MONEYGRAM INTERNATIONAL is strong in cashflow, medium in asset, profitability and weak in dividend, growth. It is classified as ‘elephant’, a type of company that is rich in assets after deducting off liabilities. The company has an intermediate health score of 6/10 considering its cashflows and debt, is likely to safely ride out any crisis without the risk of bankruptcy.

VI Peers

The company offers a variety of money transfer services including online money transfers, money orders, and bill payments. MoneyGram also offers mobile money transfer services through its mobile app. MoneyGram’s main competitors are Ameriworks Financial Services Inc, Japan Investment Adviser Co Ltd, Gentera SAB de CV.

– Ameriworks Financial Services Inc ($OTCPK:AWKS)

Japan Investment Adviser Co Ltd, with a market cap of $39.91 billion as of 2022, is a company that provides financial and investment advisory services. Its return on equity (ROE) is 13.77%. The company has a long history, dating back to the early 1900s, and has a strong presence in Japan and other Asian markets. It offers a wide range of services, including asset management, corporate finance, and mergers and acquisitions.

– Japan Investment Adviser Co Ltd ($TSE:7172)

Gentera SAB de CV is a Mexican holding company that operates through several subsidiaries engaged in microfinance, sustainable energy, and other financial services. The company has a market capitalization of 1.57 billion as of 2022 and a return on equity of 15.38%. Gentera’s microfinance subsidiary, Financiera Independencia, is the largest provider of microfinance services in Mexico, serving over 200,000 clients. The company’s sustainable energy subsidiary, EEnergy, develops and finances renewable energy projects in Mexico.

Summary

MoneyGram is a leading global provider of money transfer and payment services. MoneyGram offers a variety of convenient money transfer options. Customers can send money online, by phone, or in person at agent locations.

MoneyGram also offers bill payment services in the United States, Canada, and the United Kingdom. The company’s headquarters are located in Dallas, Texas.