Western Union
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Western Union met expectations on revenues and on earnings per share.
Compared to the prior-year quarter, revenue increased, and GAAP earnings per share expanded significantly.
Margins improved across the board.
Revenue details
Western Union booked revenue of $1.43 billion. The 24 analysts polled by S&P Capital IQ expected revenue of $1.44 billion. Sales were 5.5% higher than the prior-year quarter's $1.36 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS details
Non-GAAP EPS came in at $0.40. The 27 earnings estimates compiled by S&P Capital IQ forecast $0.40 per share on the same basis. GAAP EPS of $0.73 for Q4 were 97% higher than the prior-year quarter's $0.37 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 44.6%, 230 basis points better than the prior-year quarter. Operating margin was 25.0%, 50 basis points better than the prior-year quarter. Net margin was 31.6%, 1,370 basis points better than the prior-year quarter.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,456 members rating the stock outperform and 44 members rating it underperform. Among 446 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 436 give Western Union a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average price target is $22.77.
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