The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Moneygram International beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share shrank significantly. GAAP earnings per share increased significantly.
Gross margins dropped, operating margins dropped, net margins increased.
Moneygram International logged revenue of $354.4 million. The nine analysts polled by S&P Capital IQ expected to see revenue of $346.0 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $321.9 million.
EPS came in at $0.27. The nine earnings estimates compiled by S&P Capital IQ averaged $0.26 per share. Non-GAAP EPS of $0.27 for Q4 were 53% lower than the prior-year quarter's $0.58 per share. GAAP EPS of $0.28 for Q4 were much higher than the prior-year quarter's $0.04 per share.
For the quarter, gross margin was 54.8%, 420 basis points worse than the prior-year quarter. Operating margin was 18.9%, 410 basis points worse than the prior-year quarter. Net margin was 5.7%, 470 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $343.2 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $1.44 billion. The average EPS estimate is $1.22.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 194 members out of 234 rating the stock outperform, and 40 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Moneygram International a green thumbs-up, and 11 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 $16.75.
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