The 10-second takeaway
For the quarter ended March 31 (Q1), Moneygram International beat slightly on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue grew and GAAP earnings per share increased.
Margins shrank across the board.
Moneygram International tallied revenue of $318.1 million. The eight analysts polled by S&P Capital IQ predicted a top line of $314.6 million on the same basis. GAAP reported sales were 8.2% higher than the prior-year quarter's $294.0 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 $0.21. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.20 per share. GAAP EPS were $0.14 for Q1 against -$1.83 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 37.1%, 270 basis points worse than the prior-year quarter. Operating margin was 11.3%, 70 basis points worse than the prior-year quarter. Net margin was 3.2%, 160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $331.3 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $1.34 billion. The average EPS estimate is $1.01.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 196 members out of 229 rating the stock outperform, and 33 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Moneygram International a green thumbs-up, and nine 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 $21.63.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.