The 10-second takeaway
For the quarter ended June 30 (Q2), Western Union beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly. GAAP earnings per share dropped significantly.
Margins dropped across the board.
Western Union recorded revenue of $1.39 billion. The 24 analysts polled by S&P Capital IQ hoped for revenue of $1.37 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 $0.36. The 24 earnings estimates compiled by S&P Capital IQ anticipated $0.34 per share. GAAP EPS of $0.36 for Q2 were 18% lower than the prior-year quarter's $0.44 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 41.4%, 260 basis points worse than the prior-year quarter. Operating margin was 20.0%, 530 basis points worse than the prior-year quarter. Net margin was 14.3%, 470 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.40 billion. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $5.53 billion. The average EPS estimate is $1.43.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,560 members out of 1,614 rating the stock outperform, and 54 members rating it underperform. Among 466 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 454 give Western Union a green thumbs-up, and 12 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 $16.65.
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