The Western Union Company Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component The Western Union Company (NYSE:WU) will unveil its latest earnings on Monday, July 25, 2011. The Western Union Company is engaged in global money transfer and payment services.

The Western Union Company Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 37 cents per share, a rise of 2.8% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate moved up, but has dropped from 38 cents during the last month. For the year, analysts are projecting profit of $1.51 per share, a rise of 6.3% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by one cent, reporting net income of 35 cents per share against a mean estimate of profit of 34 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $1.33 billion in revenue this quarter, a rise of 4.7% from the year ago quarter. Analysts are forecasting total revenue of $5.42 billion for the year, a rise of 4.4% from last year’s revenue of $5.19 billion.

Analyst Ratings: 15 out of 23 analysts surveyed (65.2%) have a buy rating on Western Union Company.. This is below the mean analyst rating of 10 competitors, which average 83.9% buy ratings.

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 1.1% while it rose 8.4% in the fourth quarter of the last fiscal year and 31.7% in the third quarter of the last fiscal year.

A year-over-year revenue decrease in the first quarter snaps a streak of three consecutive quarters of revenue increases. Revenue fell 19% in the first quarter and rose 3.3%in the fourth quarter of the last fiscal year, 1.2% in the third quarter of the last fiscal year and 1.5% in the second quarter of the last fiscal year.

Competitors to Watch: MoneyGram Intl., Inc. (NYSE:MGI), Euronet Worldwide, Inc. (NASDAQ:EEFT), MasterCard Incorporated (NYSE:MA), Wright Express Corporation (NYSE:WXS), Heartland Payment Systems, Inc. (NYSE:HPY), Global Payments Inc. (NYSE:GPN), Newtek Business Services, Inc (NASDAQ:NEWT), FleetCor Tech., Inc. (NYSE:FLT), Green Dot Corporation (NYSE:GDOT), and M & F Worldwide Corp. (NYSE:MFW).

Stock Price Performance: During April 21, 2011 to July 19, 2011, the stock price had fallen $1.86 (-8.7%) from $21.28 to $19.42. The stock price saw one of its best stretches over the last year between March 16, 2011 and March 28, 2011 when shares rose for nine-straight days, rising 6.9% (+$1.41) over that span. It saw one of its worst periods between April 28, 2011 and May 5, 2011 when shares fell for six-straight days, falling 3.7% (-80 cents) over that span. Shares are up 99 cents (+5.4%) year to date.

(Source: Xignite Financials)

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