The 10-second takeaway
For the quarter ended March 31 (Q1), Moneygram International met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew significantly. GAAP earnings per share contracted to a loss.
Gross margins expanded, operating margins increased, net margins shrank.
Moneygram International chalked up revenue of $340.5 million. The 11 analysts polled by S&P Capital IQ predicted net sales of $343.1 million on the same basis. GAAP reported sales were 7.0% higher than the prior-year quarter's $318.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.56. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.24 per share. Non-GAAP EPS of $0.56 for Q1 were 167% higher than the prior-year quarter's $0.21 per share. GAAP EPS were -$0.18 for Q1 compared to $0.14 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.5%, 140 basis points better than the prior-year quarter. Operating margin was 13.0%, 80 basis points better than the prior-year quarter. Net margin was -3.7%, 690 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $355.1 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $1.44 billion. The average EPS estimate is $1.24.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 192 members out of 232 rating the stock outperform, and 40 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Moneygram International a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Moneygram International is outperform, with an average price target of $17.93.
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