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.

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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.

Key Stats:

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).

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(Source: Xignite Financials)

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