The Western Union Company
) reported third-quarter 2013 operating earnings of 39 cents per
share, 4 cents ahead of the Zacks Consensus Estimate of 35 cents.
However, earnings compared unfavorably with 45 cents per share
reported in the prior-year quarter.
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Total revenues came in at $1.41 billion, declining 1% year over
year, largely driven by soft results at the Consumer-to-Consumer
segment as transaction gains were offset by pricing reductions.
Pro forma revenues were flat with the year-ago quarter at
constant currency rate. Reported revenues marginally missed the
Zacks Consensus Estimate.
Western Union's total expenses stood at $1.11 billion, up 5% year
over year on account of higher cost of service as well as
selling, general and administrative expenses.
segment, revenues decreased 2% year over year to $1.13 billion
due to lower transaction fees, partly offset by higher foreign
exchange revenues and other revenues. The segment reported a 20%
decline in operating income to $271.1 million. The company
expects transactions to increase in the mid-to-high single-digits
for this segment in 2013.
segment, revenues increased 3% year over year to $152.3 million,
led by higher transaction fees. The segment reported a 21%
decline in operating income to $29.3 million.
reported revenues of $101.6 million in the quarter, which
increased 6% year over year, largely driven by higher foreign
exchange revenues. The segment reported an operating loss of $2.8
million, comparing favorably with the year-ago loss of $7.5
revenues, which include westernunion.com, digital and
account-based money transfer through banks, surged 24% in the
Western Union ended the quarter with 520,000 agent locations, up
5,000 year over year.
Western Union's cash flow from operations was $810.9 million in
the first nine months of 2013, down 5.6% year over year.
With $69 million of share buyback and $20 million of dividend,
Western Union returned $89 million to shareholders in the
Western Union raised the bottom end of its guidance by 5 cents.
The guidance is thus revised to $1.38-$ 1.43 from $1.33-$1.43
guided earlier. It expects cash flow from operating activities of
approximately $1 billion, raised from $900 million.
Additionally, Western Union expects to return nearly $700 million
to shareholders in 2013 in the form of share repurchases and
Western Union expects constant currency revenues to decline by
low single digits in 2013.
Western Union estimates its compliance-related expenses to
increase to 4.5% of revenues in 2014 from approximately 2.5% of
revenues in 2013.
Western Union currently carries a Zacks Rank #2 (Buy).
MoneyGram International Inc
) third-quarter earnings missed the Zacks Consensus Estimate,
Euronet Worldwide Inc
American Express Company
) earnings surpassed the same.