For the first quarter Western Union reported earnings of 37 cents a share, beating analysts' estimates of 35 cent a share by 2 cents. Revenue increased 1.5% from the year-ago quarter to $1.35 billion. Analysts surveyed by Thomson Reuters expected revenue of $1.36 billion for the quarter.
Consumer-to-consume revenue increased 3%, or 4% constant currency, in the quarter. Consumer-to-business fell -4%, or increased 7% constant currency. The difference between reported and constant currency revenue changes in consumer-to-business revenue was mostly due to the devaluation of the Argentine peso.
"We are pleased with the improved trends in our business," president and CEO Hikmet Ersek said in a press release. "Our core money transfer business continued to rebound, and key growth areas such as westernunion.com and Western Union Business Solutions delivered strong performance."
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TheStreet Ratings team rates WESTERN UNION CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate WESTERN UNION CO (WU) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."