By Senad Karaahmetovic
Western Union (NYSE:WU) reported stronger-than-expected Q1 results and full-year guidance to send its shares over 3% higher in pre-open Wednesday.
WU delivered EPS of $0.43 on revenue of $1.04 billion, beating the consensus for earnings of $0.34 on revenue of $998.5 million. Overall, revenue fell 10% year-over-year while net income dropped by 48% to $151.8M.
“I am pleased to say we exceeded our expectations in the first quarter,” said Devin McGranahan, president and chief executive officer of Western Union. “This was achieved through momentum created by our 'Evolve 2025' strategic initiatives, strength in our Middle East business, and the Company’s remaining business performing in-line with our expectations.”
Western now sees the adjusted EPS in the range of $1.55-$1.65 range, ahead of the Street at $1.58.
Wolfe Research analysts highlighted better-than-expected transactions and margins. On the other hand, Deutsche Bank analysts see “a long road ahead” for WU despite solid results.
“It remains to be seen whether WU will successfully be able to return either its core retail or digital businesses to sustainable top-line growth in the face of secular headwinds,” Deutsche Bank analysts said in a note.