Traders Selling Western Union (WU) as Q4 Results, FY10 Guidance Disappoints
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Shares of Western Union Co. (NYSE: WU) are plummeting today following fourth quarter results which showed a 7 percent drop in profit and FY10 guidance which was below analyst's current consensus estimate. The stock last traded at $17.33, down more than 8 percent from yesterday's close.
The payment services company reported fourth-quarter earnings of 32 cents per share, in line with the market consensus, on profit of $223.7 million. Last year in the same quarter the company earned $239.6 million, or 34 cents per share. On the top line, fourth quarter revenue rose 2 percent to $1.3 billion, however the number missed the analyst estimate of $1.4 billion. Expenses for the company jumped from $957 million to $995 million.
"Given the challenging global economic environment, we were pleased with our performance in 2009,” Western Union president and CEO Christina Gold said. “We took an important step in repositioning the domestic money transfer business, which produced five percent transaction growth in the fourth quarter.”
For the full year 2009, Western Union saw income fall 8 percent to $848.8 million, or $1.21 per share, while annual revenue fell 3.8 percent to $5.08 billion.
The company is forecasting FY10 sales to be in the range of down 1 percent to up 2 percent, with earnings expected to be around $1.29 to $1.34 per share. The market is currently calling for EPS of $1.40 in 2010.
The payment services company reported fourth-quarter earnings of 32 cents per share, in line with the market consensus, on profit of $223.7 million. Last year in the same quarter the company earned $239.6 million, or 34 cents per share. On the top line, fourth quarter revenue rose 2 percent to $1.3 billion, however the number missed the analyst estimate of $1.4 billion. Expenses for the company jumped from $957 million to $995 million.
"Given the challenging global economic environment, we were pleased with our performance in 2009,” Western Union president and CEO Christina Gold said. “We took an important step in repositioning the domestic money transfer business, which produced five percent transaction growth in the fourth quarter.”
For the full year 2009, Western Union saw income fall 8 percent to $848.8 million, or $1.21 per share, while annual revenue fell 3.8 percent to $5.08 billion.
The company is forecasting FY10 sales to be in the range of down 1 percent to up 2 percent, with earnings expected to be around $1.29 to $1.34 per share. The market is currently calling for EPS of $1.40 in 2010.
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