Western Union Co. (NYSE:WU) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Western Union Co. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 7.5% to $0.37 in the quarter versus EPS of $0.40 in the year-earlier quarter.
Revenue: Decreased 4.88% to $1.33 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Western Union Co. reported adjusted EPS income of $0.37 per share. By that measure, the company beat the mean analyst estimate of $0.32. It missed the average revenue estimate of $1.35 billion.
Quoting Management: “The first quarter provided signs that we are making progress with our strategies to strengthen consumer money transfer, increase customers and usage in business-to-business, and generate and deploy strong cash flow for our shareholders,” said President and Chief Executive Officer Hikmet Ersek. “Our strategic pricing investments in consumer money transfer are working, electronic channels continue to expand at a robust pace, and Business Solutions delivered solid results. As we stated in February, we expect 2013 to be a transitional year as we implement key strategic actions, but we remain confident these actions will drive revenue and profit growth in 2014 and beyond.”
Key Stats (on next page)…
Revenue decreased 6.97% from $1.42 billion in the previous quarter. EPS decreased 11.9% from $0.42 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.37 to a profit $0.35. For the current year, the average estimate has moved down from a profit of $1.47 to a profit of $1.40 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)