Western Union signed the "King of Bollywood" Shah Rukh Khan as its brand ambassador. The actor will represent Western Union and its money transfer services worldwide.
The company said that, according to its research, migrants often watch movies from their native counties as a way to connect to their homelands. Bollywood films ranked second among platforms that helped "the Indian diaspora" living away from their home country connect with home, the company said.
Must Read: Warren Buffett's 25 Favorite Stocks
"We are very excited to have Shah Rukh Khan as a Western Union ambassador," Nidhi Gupta, Western Union Digital Senior Marketing Manager, Americas said in a statement. "He is tech savvy and digitally fluent, and symbolizes our ability to create connections for modern families around the world with their loved ones back home."
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 few notable 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 revenue growth, attractive valuation levels, increase in net income, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- WU's revenue growth has slightly outpaced the industry average of 6.8%. Since the same quarter one year prior, revenues slightly increased by 2.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the IT Services industry average. The net income increased by 9.2% when compared to the same quarter one year prior, going from $214.40 million to $234.10 million.
- 46.30% is the gross profit margin for WESTERN UNION CO which we consider to be strong. Regardless of WU's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, WU's net profit margin of 16.24% significantly outperformed against the industry.
- WESTERN UNION CO has improved earnings per share by 12.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, WESTERN UNION CO reported lower earnings of $1.43 versus $1.69 in the prior year. This year, the market expects an improvement in earnings ($1.50 versus $1.43).
- You can view the full analysis from the report here: WU Ratings Report