MoneyGram Beats Estimates

Earnings rise 11%.
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MoneyGram

(MGI) - Get Report

, a global money transfer service provider, said profit rose 11.3% in the first quarter, led by higher revenue in global funds transfer segment.

The company earned $30.9 million, or 36 cents a share, in the quarter, compared with $27.8 million, or 32 cents a share, a year ago. Analysts surveyed by Thomson First Call were expecting earnings of 30 cents a share in the quarter.

First-quarter revenue rose 15.7% from a year ago to $263.7 million, topping analysts' expectations of $250 million.

Revenue of company's global funds transfer segment rose 24.4% to $183 million, reflecting the growth in money transfer transaction volume and investment revenue from higher yields on the money order portfolio. The payment systems segment revenue fell marginally to $80.7 million in the quarter.

For fiscal 2006, the company expects to earn $1.36 to $1.41 a share, up from previous forecast of $1.25 to $1.30 a share. The revised guidance includes about $11.6 million, or 8 cents a share of pretax one-time income, it said. Analysts were forecasting earnings of $1.30 a share. It expects net revenue (excluding commissions) to be about $565 million to $590 million, up from previous guidance of $535 million to $560 million.

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