The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Western Union beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Western Union chalked up revenue of $1.42 billion. The 24 analysts polled by S&P Capital IQ foresaw revenue of $1.40 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 $0.42. The 24 earnings estimates compiled by S&P Capital IQ forecast $0.35 per share. GAAP EPS of $0.40 for Q4 were 45% lower than the prior-year quarter's $0.73 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 42.6%, 200 basis points worse than the prior-year quarter. Operating margin was 20.1%, 490 basis points worse than the prior-year quarter. Net margin was 16.7%, 1,490 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.35 billion. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $5.55 billion. The average EPS estimate is $1.48.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,583 members out of 1,634 rating the stock outperform, and 51 members rating it underperform. Among 469 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 455 give Western Union a green thumbs-up, and 14 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 $15.48.
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