Western Union Company (NYSE: WU) provides a range of money transfer and bill payment services worldwide. Its consumer-to-consumer operations involve multi-currency and real-time processing systems for walk-in, online, and telephone money transfers. Its consumer-to-business operations enable payments to utilities, auto finance companies, mortgage servicers, financial service providers, and governmental agencies. The firm also offers money order products and advance payment services. Western Union does business through a network of more than 345,000 locations, in over 200 countries and territories.

Investors were pleased last week, when the company guided Y08 EPS to the higher end of the range $1.25-$1.29 and revenues to the higher end of the range $5.341-$5.439 billion. Analysts had been expecting $1.28 and $5.420 billion. Management also raised its long-term EPS growth objective from 12-14% to 15-18%, reaffirmed its long-term revenue growth objective of 10-12%, and announced that the board had authorized an additional $1 billion for share repurchases.

Continue reading Western Union Company (WU): Shares define bullish 'flag' formation

Western Union Company (WU): Shares define bullish 'flag' formation originally appeared on BloggingStocks on Wed, 25 Jun 2008 09:39:00 EST. Please see our terms for use of feeds.

Western Union Company (NYSE: WU) provides a range of money transfer and bill payment services worldwide. Its consumer-to-consumer operations involve multi-currency and real-time processing systems for walk-in, online, and telephone money transfers. Its consumer-to-business operations enable payments to utilities, auto finance companies, mortgage servicers, financial service providers, and governmental agencies. The firm also offers money order products and advance payment services. Western Union does business through a network of more than 335,000 locations, in over 200 countries and territories.

Investors were pleased with the company's steady results last week, when it reported Q4 EPS of 32 cents and revenues of $1.31 billion. Analysts had been looking for 31 cents and $1.3 billion. Management also guided FY08 EPS to $1.24-$1.28 ($1.26 consensus) and FY08 revenues to $5.34-$5.44 billion ($5.39B consensus). Goldman Sachs Asset Management noted that it held a 6.1 percent stake in the issue.

Continue reading Western Union Company (WU): Shares defining bullish 'flag' consolidation

Western Union Company (WU): Shares defining bullish 'flag' consolidation originally appeared on BloggingStocks on Thu, 07 Feb 2008 14:00:00 EST. Please see our terms for use of feeds.

Do you know which company introduced the first consumer charge card? No? It also introduced the first successful stock ticker and was one of the original eleven stocks in the Dow Jones Average. Still no? What if I say that it completed the first transcontinental telegraph line across North America? Now you have it! Of course, the telegram is a memory.

Western Union Company (NYSE: WU) provides a range of money transfer and bill payment services worldwide. Its consumer-to-consumer operations involve multi-currency and real-time processing systems for walk-in, online, and telephone money transfers. Its consumer-to-business operations enable payments to utilities, auto finance companies, mortgage servicers, financial service providers, and governmental agencies. The firm also offers money order products and advance payment services. Western Union does business through a network of more than 320,000 locations, in over 200 countries and territories.

Investors were pleased last week, when the company reported Q3 EPS of 30 cents and revenues of $1.26 billion. The Street had been looking for 28 cents and $1.26 billion. D.A. Davidson subsequently upgraded the shares to "buy," noting improved business in Mexico and optimism over newer relationships with Wal-Mart Stores Inc. (NYSE: WMT) and Google Inc. (NASDAQ: GOOG). Management also guided FY07 EPS to $1.11-$1.13, versus consensus of $1.08. The share price popped on the news and then moved into a bullish "flag" consolidation pattern. Stocks frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Continue reading Western Union shares forming a bullish 'flag' pattern

Western Union shares forming a bullish 'flag' pattern originally appeared on BloggingStocks on Mon, 29 Oct 2007 12:38:00 EST. Please see our terms for use of feeds.

Venerable money transfer firm Western Union Company (NYSE: WU) posted positive earnings overall on April 24, despite a 6% decline in volume for domestic transactions due primarily to the slowdown in the construction industry. Fewer jobs for Hispanics, who form the majority of construction workers, means fewer wire transfers of fewer dollars back home. Also, tighter documentation requirements for wiring money, coupled with increased immigration law enforcement caused a softening of domestic earnings by $20-$30 million. In order to counteract these effects, Western Union has reduced some fees for utilizing its online distribution network, www.westernunion.com.

Despite this, Western Union still posted solid revenue growth numbers. Revenue was up 8% to $1.1 billion. Diluted EPS was $0.25. First quarter 2007 operating income was $305 million. Net income was $193 million. During the quarter, Western Union was hit by higher than anticipated restructuring and integration costs as a result of spinning off its First Data subsidiary.

International consumer-to-consumer transactions now account for 60% of Western Union's total revenue. Within the international market, revenues from Chinese transactions are up 15% on transaction growth of 21%. India registered a 95% transaction growth rate from 1Q 2006. Western Union CEO Christina Gold believes Western Union has just scratched the surface of demand for wire transfers within India. In order to meet increasing international consumer-to-consumer demand, Western Union has signed more than 305,000 agent locations including supermarkets, newspaper kiosks and foreign banking networks worldwide.

In 1Q 2007, Western Union spent $113 million to buy back 5.2 million of its shares, with plans to spend an additional $867 million through 2008. Despite a tough domestic market, Western Union management forecasts FY 2007 to be $1.07-$1.11 on revenue growth of 10-11%. Western Union stock opened the year at $22.71, and closed recently at $22.16, having gone essentially nowhere. If you have the stock in your portfolio, I would hold on and wait for better times. If not, I wouldn't go out and buy it until we see how the US housing market will behave.

Western Union has earnings wired originally appeared on BloggingStocks on Wed, 06 Jun 2007 14:18:00 EST. Please see our terms for use of feeds.