The 10-second takeaway
For the quarter ended March 31 (Q1), Western Union met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. GAAP earnings per share dropped.
Margins shrank across the board.
Western Union logged revenue of $1.33 billion. The 24 analysts polled by S&P Capital IQ predicted a top line of $1.35 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.37. The 25 earnings estimates compiled by S&P Capital IQ forecast $0.33 per share. GAAP EPS of $0.37 for Q1 were 7.5% lower than the prior-year quarter's $0.40 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 42.7%, 110 basis points worse than the prior-year quarter. Operating margin was 22.4%, 190 basis points worse than the prior-year quarter. Net margin was 16.0%, 170 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.38 billion. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $5.54 billion. The average EPS estimate is $1.42.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,589 members out of 1,640 rating the stock outperform, and 51 members rating it underperform. Among 458 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 445 give Western Union a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Western Union is hold, with an average price target of $16.16.
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