The 10-second takeaway
For the quarter ended March 31 (Q1), Western Union met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. GAAP earnings per share dropped.
Margins shrank across the board.
Western Union logged revenue of $1.33 billion. The 24 analysts polled by S&P Capital IQ predicted a top line of $1.35 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 $0.37. The 25 earnings estimates compiled by S&P Capital IQ forecast $0.33 per share. GAAP EPS of $0.37 for Q1 were 7.5% lower than the prior-year quarter's $0.40 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 42.7%, 110 basis points worse than the prior-year quarter. Operating margin was 22.4%, 190 basis points worse than the prior-year quarter. Net margin was 16.0%, 170 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.38 billion. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $5.54 billion. The average EPS estimate is $1.42.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,589 members out of 1,640 rating the stock outperform, and 51 members rating it underperform. Among 458 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 445 give Western Union a green thumbs-up, and 13 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 $16.16.
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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. The Motley Fool recommends 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.