Western Union (NYSE:WU) Posts Quarterly Earnings Results, Misses Estimates By $0.02 EPS

Key Points

• Western Union reported $0.42 earnings per share for the quarter, missing analysts' estimates of $0.44 by $0.02.
• The company declared a quarterly dividend of $0.235, with a dividend yield of 11.15%, and a payout ratio of 35.07%.
• Goldman Sachs increased its stake in Western Union by 27.4%, indicating growing confidence from institutional investors despite the company's recent earnings miss.

Western Union (NYSE:WU - Get Free Report) announced its earnings results on Monday. The credit services provider reported $0.42 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.44 by ($0.02), Zacks reports. Western Union had a net margin of 22.08% and a return on equity of 77.19%.

Western Union Price Performance

Western Union stock traded down $0.15 during trading hours on Monday, hitting $8.43. The stock had a trading volume of 10,368,164 shares, compared to its average volume of 7,047,026. Western Union has a 1-year low of $7.99 and a 1-year high of $13.11. The stock has a market capitalization of $2.79 billion, a price-to-earnings ratio of 3.15, a PEG ratio of 1.48 and a beta of 0.65. The stock's fifty day moving average is $8.84 and its two-hundred day moving average is $9.80. The company has a debt-to-equity ratio of 2.97, a current ratio of 1.15 and a quick ratio of 1.15.

Western Union Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, June 30th. Investors of record on Monday, June 16th were issued a $0.235 dividend. This represents a $0.94 dividend on an annualized basis and a dividend yield of 11.15%. The ex-dividend date of this dividend was Monday, June 16th. Western Union's dividend payout ratio is currently 35.07%.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Goldman Sachs Group Inc. lifted its stake in shares of Western Union by 27.4% during the first quarter. Goldman Sachs Group Inc. now owns 1,964,972 shares of the credit services provider's stock valued at $20,789,000 after buying an additional 422,715 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in Western Union by 9.0% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,861,908 shares of the credit services provider's stock valued at $19,699,000 after acquiring an additional 154,110 shares during the last quarter. Integrated Wealth Concepts LLC lifted its stake in shares of Western Union by 15.5% during the 1st quarter. Integrated Wealth Concepts LLC now owns 39,859 shares of the credit services provider's stock worth $422,000 after purchasing an additional 5,351 shares during the period. Finally, Focus Partners Wealth boosted its holdings in shares of Western Union by 93.5% during the first quarter. Focus Partners Wealth now owns 27,535 shares of the credit services provider's stock worth $291,000 after purchasing an additional 13,302 shares during the last quarter. 91.81% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

WU has been the subject of several analyst reports. Deutsche Bank Aktiengesellschaft started coverage on Western Union in a research report on Thursday, July 17th. They issued a "hold" rating and a $9.00 price objective for the company. Monness Crespi & Hardt cut shares of Western Union from a "neutral" rating to a "sell" rating and set a $7.50 target price on the stock. in a research report on Thursday, April 24th. Royal Bank Of Canada dropped their price target on shares of Western Union from $14.00 to $13.00 and set a "sector perform" rating for the company in a research report on Thursday, April 24th. Oppenheimer assumed coverage on shares of Western Union in a research report on Monday, June 2nd. They set a "market perform" rating on the stock. Finally, UBS Group reaffirmed a "neutral" rating and set a $10.50 target price (down from $11.00) on shares of Western Union in a research note on Thursday, April 24th. Four analysts have rated the stock with a sell rating and eight have assigned a hold rating to the company's stock. According to data from MarketBeat, Western Union currently has an average rating of "Hold" and an average target price of $10.33.

About Western Union

The Western Union Company provides money movement and payment services worldwide. The company operates through Consumer Money Transfer and Consumer Services segments. The Consumer Money Transfer segment facilitates money transfers for international cross-border and intra-country transfers, primarily through a network of retail agent locations, as well as through websites and mobile devices.

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