The 10-second takeaway
For the quarter ended March 31 (Q1), Western Union beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share increased significantly.
Gross margins expanded, operating margins dropped, and net margins expanded.
Western Union chalked up revenue of $1.39 billion. The 25 analysts polled by S&P Capital IQ looked for revenue of $1.37 billion on the same basis. GAAP reported sales were 8.6% higher than the prior-year quarter's $1.28 billion.
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 $0.40. The 27 earnings estimates compiled by S&P Capital IQ averaged $0.40 per share. GAAP EPS of $0.40 for Q1 were 25% higher than the prior-year quarter's $0.32 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 43.8%, 140 basis points better than the prior-year quarter. Operating margin was 23.9%, 240 basis points worse than the prior-year quarter. Net margin was 17.7%, 130 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.44 billion. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $5.79 billion. The average EPS estimate is $1.74.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,465 members out of 1,508 rating the stock outperform, and 43 members rating it underperform. Among 393 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 384 give Western Union a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Western Union is outperform, with an average price target of $22.26.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Western Union. Motley Fool newsletter services have recommended creating a write covered straddle position in Western Union. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.