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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