Western Union Company’s (WU) Earnings Estimate Lowered
February 05, 2010 1:12 PM
Credit Suisse (ADR) (NYSE: CS) has released an update on Western Union Company (NYSE: WU) in its tech daily report released yesterday.
The company has reported results for the fourth-quarter. Western Union reported revenue of $1.314 billion, 2.3% ahead of Credit Suisse’s estimate. The EPS of $0.32 was below Credit Suisse’s estimate of $0.01. The company reported positive transaction trends in the major corridors except the Gulf States.
The company has issued conservative guidance for 2010, mainly due to the weak outlook for Global Business Payments. The company expects EPS of $1.29-$1.34 for 2010.
According to Credit Suisse, the core Money Transfer business should see accelerating revenue and margins in 2010. However, Credit Suisse has lowered its EPS estimate for FY10 from $1.38 to $1.32. The estimates have been lowered due to the weak outlook for Global Business Payments in 2010.
Credit Suisse has maintained an Outperform rating for Western Union Company, with a price target of $25.
