Western Union Misses On Earnings, Announces 10 Percent Staff Cut
Adjusted earnings per share (EPS) came in at $0.45 per share, missing analyst consensus estimates of $0.48 per share. This compares to earnings of $0.46 per share a year ago. Net income of $614.8 million, or $1.42 a share, in the second quarter, compared with $217.6 million, or 47 cents a share, a year earlier.
Revenue came in a $1.34 billion in the second quarter, ahead of analysts estimates of 0.07 percent but down from revenue last year at this time by $1.41 billion. The company has topped consensus revenue estimates just once over the last four quarters.
In other critical statistics, Consumer-to-Consumer (C2C) revenues made 83 percent of WU’s revenue in the quarter, and saw a 1 percent decline on a reported basis, or increased 1 percent constant currency, while transactions grew by 1 percent. Latin America showed the strongest growth and offset declines in the Asia Pacific region and in the U.S. domestic market. Westernunion.com C2C revenues went up 18 percent on a reported basis, or 20 percent constant currency, and transactions increased 15 percent. Westernunion.com is now available in 70 nations and represented 13 percent of total C2C revenue.
Western Union Business Solutions revenue was up 3 percent on a reported basis, or 7 percent on a constant currency basis. Europe, Australia were the strongest drivers All in 7 percent of total company revenue in the quarter.
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