Global payment leader Western Union (WU 1.42%) reported third-quarter results today after the markets closed, showing that it posted net sales of $1.41 billion, down less than 1% from the $1.42 billion in the same period in the previous year, and pretty much in line with the $1.4 billion Capital IQ consensus estimate.
However, net income came in at $214.4 million, or $0.39 per share, down 20% from $269.5 million, or $0.45 per share, in the same period in 2012, but $0.04 per share better than the CapIQ estimates of $0.35 per share.
Western Union is experiencing pressure from previously implemented price reductions in certain corridors despite the transaction gains it made, such as its consumer money transfer transactions, which grew 9% year over year.
The global payment leader did raise the low end of its earnings guidance to a range of $1.38 to $1.43 per share from its prior forecast of $1.33 to 1.43 per share, but it still came in light of analyst expectations of $1.44 per share. It also increased its expectations for EBITDA margins of 25%, up from prior forecasts of 24.5%, and operating cash flows of $1 billion, up from $900 million previously.
Shares of Western Union closed down today 0.31%, or $0.06, to $19.24.
