MoneyGram International Inc., the world’s second-largest money transfer provider, fell the most in five months after posting profit that missed analysts’ estimates and lowering its revenue forecast for the year.
MoneyGram dropped 10 percent to $6.96 at 10:08 a.m. in New York, the most intraday since Feb. 11. The stock has climbed 9.3 percent this year, compared with the 6.7 percent gain of the Russell 2000 Index.
Second-quarter profit excluding some items was 15 cents a share, the Dallas-based firm said Friday in a statement. That missed by five cents the average estimate of 13 analysts surveyed by Bloomberg. Net income was $3.1 million compared with $12.4 million loss a year earlier.
MoneyGram said it expects revenue growth adjusted for currency fluctuations of 7 percent to 9 percent for the year, down from its previous forecast of 8 percent to 10 percent.
“Economic and geopolitical issues in certain countries accelerated during the quarter and impacted our top-line performance,” Chief Executive Officer Alex Holmes said in the statement. Reducing the firm’s revenue forecast “reflects the ongoing impact of slower growth in these countries,” he said.
