MoneyGram International Inc. MGI recently announced that its Indonesian subsidiary PT MoneyGram Payments System has inked a long-term deal with Indonesian remittance company Arsema. Per the agreement, Arsema would channel MoneyGram’s money transfer services at all post offices of Indonesia. The services would start from Central Java and Bali region.
MoneyGram strives to provide secure money transfer services to its customers and the deal with Arsema will further help the company in its efforts. This collaboration will also expand MoneyGram’s reach across Indonesia. Also, the aforesaid deal will facilitate operation to serve customers better with faster and more convenient offerings.
The overall process has become much easier and can be completed in a few simple steps. Customers can now simply visit any MoneyGram agent location and start transferring and receiving funds after filling up and submitting a form and displaying a photo identification proof. The funds can be ready for collection is Depending on agent's operating hours and regulatory requirements, the transactions can be made within 10 minutes or less.
Apart from strengthening its presence in high-growth potential markets, MoneyGram has forayed into several unexplored and underdeveloped global markets. The company has also been expanding in markets that offer high growth potential. Per the World Bank report, remittances worth $9.6 billion flowed into Indonesia in Apr 2016. We expect the latest deal to help the company capitalize on the opportunity, which in turn, should add to its top line going forward.
MoneyGram is set to release its second-quarter earning on Jul 29. The Zacks Consensus Estimate that is currently pegged at 14 cents for the second quarter, which reflects a year-over-year growth of 16.7%. However, our proven model does not conclusively show that the company will beat earnings this quarter. This is because the insurer has a Zacks Rank #3 (Hold) but an Earnings ESP of 0.00% makes surprise prediction difficult.
Stocks to Consider
Some better-ranked stocks from the Miscellaneous Financial Services industry include Euronet Worldwide, Inc EEFT, Fortress Transportation and Infrastructure Investors LLC FTAI and ORIX Corporation IX. Each of these stocks holds Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
MONEYGRAM INTL (MGI): Free Stock Analysis Report
ORIX CORP-ADR (IX): Free Stock Analysis Report
EURONET WORLDWD (EEFT): Free Stock Analysis Report
FORTRESS TR&INF (FTAI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research