ENGLEWOOD, Colo. (
beat third-quarter expectations on Tuesday afternoon, with management raising its full-year profit outlook.
The money-transfer and payments company raised earnings-per-share guidance to a range of $1.29 to $1.32 from a previous range of $1.24 to $1.29. It still expects a 7 cent per share charge for restructuring expenses. Western Union also raised revenue guidance to a range of 1% to 2% increase from 2009, from an earlier estimate of anywhere from a 2% decline to 1% growth.
"All of our regions contributed to the consumer-to-consumer transaction growth, and margins were strong," President and CEO Hikmet Ersek said in a statement. "We now expect full year earnings per share to be higher than our previous outlook, even with increased marketing and other investments in the fourth quarter to propel future growth."
Last quarter, Western Union earned $238.4 million, or 36 cents per share, during the September period on revenue of $1.33 billion. Western Union's bottom line was 32% stronger than the $181 million earned in the year-ago period, despite restructuring charges and currency fluctuations that weighed on results. It beat the average analyst expectation by a penny, according to
Revenue was in-line with Western Union's earlier guidance and slightly better than the average analyst expectation of $1.3 billion. The company cited 10% growth in consumer-to-consumer transactions as well as a 35% increase in U.S. domestic money transfer as reasons for the profit climb.
Western Union shares fell 1.1% to close at $17.91 but recouped some of those losses in after-hours trading. The stock traded up a few cents as investors digested the results, but fell flat ahead of the earnings call.
-- Written by Lauren Tara LaCapra in New York
>To contact the writer of this article, click here:
Lauren Tara LaCapra
>To follow the writer on Twitter, go to
>To submit a news tip, send an email to:
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.