Western Union Q1 Profit Tops Estimates

reported better-than-expected earnings for the first quarter on Thursday. The Englewood, Colorado-based company reported a quarterly profit of $203.9 million, or $0.39 per share, versus a year-ago profit of $203 million, or $0.37 per share. Its revenue slipped 2 percent to $1.32 billion, while revenue, on a constant currency basis, climbed 4 percent. Analysts were estimating earnings of $0.38 per share on revenue of $1.31 billion. The average estimate among 13 Estimize users was for earnings of $0.39 per share and revenue of $1.32 billion. Consumer-to-Consumer revenue slipped 4 percent in the quarter, while transaction volume increased 3 percent. Westernunion.com C2C revenue jumped 17 percent, while transactions rose 25 percent. Electronic-channel revenue gained 17 percent in the quarter. Consumer-to-Business revenue gained 7 percent in the quarter, while Western Union Business Solutions revenue dropped 1 percent. Operating margin widened to 20.6 percent for the quarter, versus 20.1 percent. Total expenses declined 2.8 percent, while overhead expenses shrank 1.7 percent. "We delivered a solid start to the year, as earnings per share increased 5% despite foreign exchange headwinds and a slow global economy," said President and Chief Executive Officer Hikmet Ersek. "Each of our business segments produced constant currency revenue growth, operating margins improved, and cash flow generation continued to be robust." The company also affirmed its guidance for 2015. Western Union shares rose 2.56 percent to $20.80 in the after-hours trading session.