Western Union (WU) Tops Q3 EPS by 11c, Revenues Beat; Offers FY20 EPS Guidance Above Consensus

October 29, 2020 4:08 PM

Western Union (NYSE: WU) reported Q3 EPS of $0.57, $0.11 better than the analyst estimate of $0.46. Revenue for the quarter came in at $1.26 billion versus the consensus estimate of $1.25 billion.

President and CEO Hikmet Ersek said, “Our solid third quarter performance highlights the value of our services and the resiliency of our customers in providing vital support for families, communities, and businesses around the world throughout this global crisis. In addition, our strategy, planning, and execution enabled us to adjust to changing market conditions, rebound quickly from the sharp downturn COVID-19 caused during the second quarter, and deliver strong profitability for shareholders.”

Ersek added, “Although macro-economic uncertainty remains elevated, our business continues to improve. The investments in platform and digital capabilities we have made over the years are paying off, as money transfer and payment customers increasingly turn to Western Union’s unmatched, omni-channel platform to meet evolving needs. I am enthusiastic about the market opportunity to further enhance the Company’s strong position and to expand the customer segments for cross-border financial transactions.”

CFO Raj Agrawal stated, “We are pleased with third quarter results, as Consumer-to-Consumer segment trends improved significantly with 6% transaction growth, including more than 95% digital transaction growth for the second consecutive quarter. The business also generated solid dollar and margin profitability, resulting from productivity savings, prudent management of initiatives, and the strong economics of our fast-growing digital business. We remain focused on pushing forward with our growth strategy and given improved visibility into our market and commercial trends we have reissued a financial outlook for the full year 2020.”

GUIDANCE:

Western Union sees FY2020 EPS of $1.80-$1.85, versus the consensus of $1.78.

The Company has reinstituted a financial outlook for full year 2020, with the key assumptions of no material changes from the current macro-economic conditions and no significant worsening of the COVID-19 pandemic, as follows:

Revenue

Operating Profit Margin

Earnings per Share

For earnings history and earnings-related data on Western Union (WU) click here.

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