Western Union Company (NYSE:WU) shares are trading lower Friday after the company reported mixed first-quarter financial results.
- Western Union shares are retreating from recent levels. Why is WU stock falling?
Q1 Highlights
Western Union reported adjusted earnings per share of 25 cents, missing the consensus estimate of 39 cents. In addition, it reported revenue of $982.70 million, beating the consensus estimate of $960.57 million.
Consumer Services revenue grew 24%, while Branded Digital revenue increased 9% and transactions rose 21% year-over-year.
The company said results were impacted by higher expenses in North America, including increased commissions tied to new agents, foreign currency impacts, lower fixed cost coverage and the absence of vendor incentive payments.
"First quarter results reflect the continued challenges in our Americas retail business as well as a few discrete items affecting the quarter," said CEO Devin McGranahan.
Western Union affirmed its fiscal-year adjusted earnings per share guidance of $1.75 to $1.85, versus the consensus estimate of $1.79. Furthermore, it affirmed its revenue guidance of $4.23 billion o $4.35 billion, versus the consensus estimate of $4.26 billion.
Western Union Shares Slip
WU Price Action: At the time of publication, Western Union shares are trading 12.97% lower at $8.12, according to data from Benzinga Pro.
Image via Shutterstock
Login to comment