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Why MoneyGram International faltered on Friday

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What happened

MoneyGram International (NASDAQ: MGI) Shareholders were not too comfortable Friday, as their shares fell more than 8%. The money transfer company’s recent quarterly results were the direct cause of the decline.

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so what

Thursday night, MoneyGram published its second-quarter earnings report. This showed that the company generated a gain of $329.3 million, which is an 18% improvement over the alike quarter of 2020. This helped increase the volume of cross-border transfers by 41%, which is an significant activity for the company.

As for non-GAAP net gain (adjusted), it came in at about $600,000 ($0.01 per share) from final year’s figure of nearly $900,000.

The $100 bill is artistically and geometrically arranged.

Image source: Getty Images.

While MoneyGram only managed to meet average analyst expectations for adjusted net earnings per share, it scored a big triumph. Forecasters tracking the stock expected $321 million.

In its earnings statement, the financial services company said the improvements came from a record number of customers and online transactions; As a money-moving company, it has a lot to acquire from effectively harnessing technology.

What now

MoneyGram provided guidance for the current quarter (third quarter). She wrote that she “expects business conditions to remain consistent with the second quarter,” in which whole revenue will be only slightly higher, at $323 million to $333 million. That range, unfortunately, is just under the $333.25 million average analyst estimate for the third quarter.

Meanwhile, the company expects adjusted EBITDA to fall between $52 million and $57 million; Final outcome forecasts are not provided. This item was $54.8 million in the second quarter.

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Eric Folkmann does not grip a position in any of the stocks mentioned. The Motley Fool does not have a position in any of the stocks mentioned. Motley Fool has a disclosure policy.

The opinions and opinions expressed here are those of the author and do not necessarily reflect the views and opinions of Nasdaq, Inc.


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