MoneyGram International (NASDAQ:MGI) shareholders weren’t feeling very flush on Friday, as their stock sank by over 8%. The money transfer company’s latest quarterly results were the direct reason for the drop.
Thursday night, MoneyGram published its Q2 earnings report. This showed that the company earned $329.3 million, an 18% improvement over the same quarter in 2020. This was aided by a 41% gain in volume for cross-border transfers, an important activity for the company.
As for non-GAAP (adjusted) net profit, this came in at around $600,000 ($0.01 per share) from the year-ago figure of approximately $900,000.
While MoneyGram only managed to meet the average analyst expectation for adjusted, per-share net profit, it notched a beat on the top line. Prognosticators tracking the stock had been expecting $321 million.
In its earnings release, the financial services company said its improvements came from a record number of both online customers and transactions; as a money-moving business, it has much to gain from effectively harnessing technology.
MoneyGram proffered guidance for its current quarter (Q3). It wrote that it “expects business conditions to remain consistent with the second quarter,” with total revenue to be only slightly higher, at $323 million to $333 million. That range, unfortunately, is just under the $333.25 million average analyst Q3 estimate.
Meanwhile, the company anticipates that adjusted EBITDA will fall between $52 million and $57 million; it did not provide a bottom-line forecast. That line item was $54.8 million in Q2.
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