Western Union (WU) Misses Q1 EPS by 4c, Revenues Miss; Offers FY19 EPS Guidance

Western Union (NYSE: WU) reported Q1 EPS of $0.39, $0.04 worse than the analyst estimate of $0.43. Revenue for the quarter came in at $1.34 billion versus the consensus estimate of $1.36 billion.

President and CEO Hikmet Ersek said, “We expect revenue growth and profit margins to improve over the course of the year, as we gain traction with new opportunities and face less-challenging comparisons.”

Ersek added, “We remain committed to our strategies to deliver strong digital expansion, offer our cross-border platform to new business areas, and generate additional operating efficiencies. Divesting the Speedpay domestic bill payments business is the first step in streamlining our operating model and cost structure, and we are evaluating other initiatives to drive stronger profitability in the future.”

GUIDANCE:

Western Union sees FY2019 EPS of $2.66-$2.76, versus the consensus of $1.87.

• GAAP EPS in a range of $2.66 to $2.76 (previously $1.83 to $1.95)
  • increase from prior outlook reflects the approximately $0.84 net effect related to the Speedpay and Paymap transactions as noted above
  • the Company currently expects to spend between $500 million and $600 million on share repurchases in 2019, and a similar amount in 2020

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

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