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Morgan Stanley Thinks The Western Union Company's Compliance Costs Seem to be Under Control

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In a report published Wednesday, Morgan Stanley analyst Smittipon Srethapramote reiterated an Equal-Weight rating on The Western Union Company (NYSE: WU).

In the report, Morgan Stanley noted, “Revenues of $1.422bn missed MSe/Consensus at 1.442bn/1,425, while EPS of $0.31 missed vs. MSe/Consensus at $0.32/$0.35. The delta vs. our model was largely attributable to shortfall in C2C revenues. We note that EPS for the quarter benefitted from a lower than expected tax rate, which precluded another $0.02 of downside. C2C transaction growth remains healthy at levels similar to 3Q as pricing actions implemented in several corridors continue to deliver results; overall C2C transaction growth was 9% (vs. 9% in 3Q) with growth in priced corridors at 20% (same as 3Q) and non-priced corridors at 5% (vs. 6% in 3Q).”

The Western Union Company closed on Tuesday at $15.88.

Posted-In: Morgan Stanley Smittipon SrethapramoteAnalyst Color Reiteration Analyst Ratings


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