Western Union Earnings Cheat Sheet: Margins Expand with Strong Revenues, Profit Increases
S&P 500 (NYSE:SPY) component The Western Union Company (NYSE:WU) reported net income above Wall Street’s expectations for the most recent quarter. The Western Union Company is engaged in global money transfer and payment services.
The Western Union Company Earnings Cheat Sheet for the Second Quarter
Results: Net income for The Western Union Company rose to $263.2 million (41 cents per share) vs. $221 million (33 cents per share) in the same quarter a year earlier. This marks a rise of 19.1% from the year earlier quarter.
Revenue: Rose 7.3% to $1.37 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: WU reported adjusted net income of 42 cents per share. By that measure, the company beat the mean estimate of 37 cents per share. It beat the average revenue estimate of $1.33 billion.
The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 1.1% and in the fourth quarter of the last fiscal year, the figure rose 8.4%.
The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the first quarter, by 3 cents in the fourth quarter of the last fiscal year, and by 3 cents in the third quarter of the last fiscal year.
Margins rose in the first quarter after falling the quarter before. Gross margin rose 1.2 percentage points to 44.1% from the quarter earlier quarter. In the fourth quarter of the last fiscal year, the figure rose 16.7 percentage points to 25.3% from the year earlier quarter.
Revenue rose last quarter after seeing a drop the quarter before. Revenue fell 19% to $998 million in the first quarter from the year earlier.
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).
(Source: Xignite Financials)