Earnings Preview: Western Union Company's EPS, Revenue Expected to Rise

Western Union (NYSE: WU) will announce its next round of earnings this Tuesday, October 25, 2011. Here's Benzinga's essential guide to Western Union Company's third quarter earnings report.

Earnings and Revenue:

Analysts are predicting an EPS reading of 39 cents/share and revenues of $1.41 billion. Western Union Company's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 37 cents/share on revenues of $1.33 billion. Can Western Union Company manage the estimated 5.4% rise in EPS and 6% increase in revenues from the year-ago quarter as analysts are predicting? We'll have to wait until Tuesday to find out.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

As of October 19, 2011, Western Union Company's current share price was $16.54. Shares are down 9.8% year to date. For a full 12 months, the return has declined by 8%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

• Long-term shareholders are already wary of 12-month losses prior to the announcement

Average Stock Rating:

The average rating by analysts for Western Union Company is a Moderate Buy. Over the past three months this rating's strength has declined slightly.

Competitors:

Wondering how some of the other information technology companies are doing? Here are a few of Western Union Company's peers in that sector.

• Euronet Worldwide (NASDAQ: EEFT): Moderate Buy with a $0.36 recent quarter EPS
• FleetCor Technologies (NYSE: FLT): Hold with a $0.51 recent quarter EPS
• Green Dot (NYSE: GDOT): Moderate Buy with a $0.27 recent quarter EPS
• Global Payments (NYSE: GPN): Moderate Buy with a $0.88 recent quarter EPS

The construction services company's industry has seen price/earnings growth of 1% during the current fiscal year.

Finally, a description of the company's main areas of operation: Western Union is engaged in global money transfer and payment services.

Take Action:

That's your advanced look at Western Union Company's upcoming earnings numbers -- be ready to take quick action if the company's report contains any surprises. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

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