Western Union (NYSE: WU) reported Q4 EPS of $0.45, $0.03 better than the analyst estimate of $0.42. Revenue for the quarter came in at $1.27 billion versus the consensus estimate of $1.25 billion.

• Q4 Revenue of $1.3 billion, GAAP EPS $0.43, Adjusted EPS $0.45
• Company achieves all-time highs for money transfer transactions and principal in 2020, with 38% growth for digital revenues
• Company provides 2021 financial outlook, including margin expansion and solid revenue growth
• Share repurchases resume in the first quarter of 2021 along with a 4% increase in the quarterly dividend

President and CEO Hikmet Ersek said, “2020 was an unprecedented year for the global community and Western Union, and I am proud of how we responded to a range of COVID-19 challenges and ensured our services were available for customers to provide critical economic support to loved ones and communities around the world. We applaud the heroic efforts of our customers, many of whom have worked on the front lines in essential services of host communities during this crisis, while selflessly contributing to improved quality of life in home nations.”

Ersek added, “The strong underlying fundamentals of our business really stood out this year, as we quickly began to rebound from an early, historic economic shock, finished with solid fourth quarter momentum, and still generated strong full year margins and cash flow. Despite the disruption from the pandemic, we remained highly focused on our growth strategy, driving exceptional results in our digital business and building the foundation for our future. As we begin 2021, uncertainty remains elevated but we are optimistic that business will continue to improve gradually, with expectations that our digital revenues will reach approximately $1 billion in 2021. In addition, we have a compelling strategic agenda that should position us to expand our offerings and markets to drive profitable, long-term growth that we believe will create value for shareholders.”

CFO Raj Agrawal stated, “We delivered solid results again in the fourth quarter, which contributed to full year 2020 results that met or exceeded the financial outlook we reinstituted with third quarter results in October. I am pleased to say that the resilience of our business, coupled with prudent management of costs and capital, enabled us to achieve the 21% adjusted margin we initially targeted for 2020, generate $878 million of operating cash flow, return $587 million of cash to shareholders, and continue to invest to drive our strategy forward. In summary, we had very strong financial performance despite a historic economic disruption. Assuming no further macro-economic setbacks, we expect the business will continue to improve in 2021 and are issuing a full year financial outlook that includes mid-single digit constant currency revenue growth and EPS in a range of $2.00 to $2.10.”

GUIDANCE:

Western Union sees FY2021 EPS of $2.00-$2.10, versus the consensus of $2.02.

• The Company expects the following financial outlook for full year 2021, which assumes no material worsening in macro-economic conditions or the COVID-19 pandemic. While we expect solid full-year results, we anticipate quarterly variability in year-over-year growth rates as we cycle through the impact that COVID-19 had on the business last year

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