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MoneyGram disclosed possible $10M drop in 2nd quarter earnings

MoneyGram International Inc. is a global company that focuses on payment services, which includes global money transfer, money orders and bill payment solutions. The company started way back 1940 with its headquarters situated in Dallas, TX. The company trades at Wall Street using the tag MGI for its stocks. As of late, a positive trend is being observed with MGI stocks, and here’s what happened.

The Q1 earnings report released by MoneyGram is one of the biggest factors, since it reflects that even though the company’s total revenue is only up by 3% compared to the same quarter last year, which is now $310.1 million, the revenue of their online services called MoneyGram Online (MGO) had jumped by 119% which is very much appealing for traders and investors.

This is also leading the positive climb of the stock in the recent days, along with the fact that the issue with the Department of Justice being almost resolved.

The shareholders of the company are very pleased to hear that the Department of Justice had certified MoneyGram as a compliant company with sufficient money-laundering regulations, and the case is bound to be dismissed within the following weeks.

That being said, the MGI stocks have been moving ahead, from $3 last June 2020, almost $7 in January of 2021. There’s also a rating update for the MGI stock in June which further highlighted the stocks’ prospects and possibilities.

The company also released their expectations for 2021 Q2 earnings with a total revenue target between $315 to 325 million dollars basing on the fact that there is continuous growth for its money transfer business. This estimate includes the potential loss of $10 million as Walmart Marketplace introduced a new competition which is Western Union, to be available at their stores, which is implemented since the end of April.

The impact of this is well expected and included on the company’s estimates, which reflects how confident they are to be able to function and continue to grow despite a competition being present just around the corner.

For now, browse and click more on Prime Bright Investment Limited to know more about what we can offer for your financial needs.

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