Western Union (WU) - Bear of the Day

By
A A A

We are downgrading our recommendation on The Western Union Co. ( WU ) to Underperform from Neutral following its third quarter earnings release, in which the company trimmed its full-year 2012 earnings expectations. The company slashed its earnings guidance to a range of $1.60-$1.63 per share from a previous estimate of $1.68-$1.72 per share.

Moreover, stiff competition and a weak global economy is taking a toll on its performance. Western Union is facing compliance-related issues, particularly those linked to its Southwest Border agreement. It has also recently witnessed challenges in its core retail money transfer business in certain key markets.

The company is also facing strong competition from electronic channels of money transfer. On the other hand, Western Union is also facing management issues. Given a host of headwinds, we expect the stock to remain under pressure in the near term.

WESTERN UNION (WU): Free Stock Analysis Report

To read this article on Zacks.com click here.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks

Referenced Stocks: WU

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Budgeting for Baby
Budgeting for Baby                  

Stocks

Referenced

67%

Most Active by Volume

86,692,048
  • $16.82 ▼ 1.35%
66,073,054
  • $13.30 ▼ 6.27%
54,801,491
  • $14.59 ▼ 1.35%
54,305,010
  • $76.55 ▼ 3.15%
53,982,567
  • $3.42 ▼ 2.01%
53,146,472
  • $97.21 ▼ 1.60%
50,334,521
  • $99.18 ▼ 1.56%
44,049,276
  • $25.03 ▼ 0.56%
As of 10/1/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com