Western Union Fails to Impress Investors

Beating expectations was not enough for investors to turn a blind eye to Western Union's ( WU) profit decline.

Shares of the money transfer agent have fallen by 5% to $17.28 in Tuesday afternoon trading.

During the second quarter, the company recorded a profit of $220.2 million, or 31 cents a share, down from $231.5 million, or 31 cents, in the year-ago period.

Earnings per share was unchanged despite a drop in net income, as there were fewer shares outstanding during the most recent quarter.

Analysts expected earnings of 30 cents a share.

Revenue dropped 7% to $1.25 billion from $1.35 billion, hurt by unfavorable currency exchange rates.

Western Union also saw an 8% decline to $1 billion from $1.08 billion in transaction fees, which account for a big chunk of revenue.

Investors were also underwhelmed by the company's affirmation of its full-year outlook in the range of $1.18 to $1.28 a share. Analysts are looking for a gain of $1.26.

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