Stock Monitor: EZCORP Post Earnings Reporting
LONDON, UK / ACCESSWIRE / December 13, 2017 / Active-Investors free earnings report on The Western Union Co. (NYSE: WU) ("Western Union") has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=WU. The Company posted its third quarter fiscal 2017 financial results on November 02, 2017. The leading money transfer services provider's results topped market expectations. Register today and get free access to our complimentary member's area where many more reports are available:
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Active-Investors.com is currently working on the research report for EZCORP, Inc. (NASDAQ: EZPW), which also belongs to the Financial sector as the Company Western Union. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, The Western Union most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:
www.active-investors.com/registration-sg/?symbol=WU
Earnings Highlights and Summary
During the third quarter fiscal 2017, Western Union's revenues increased 1.95% to $1.40 billion compared to $1.38 billion in Q3 FY16. The Company's revenue numbers beat analysts' estimates of $1.39 billion.
Western Union's operating income was $271.60 million in the reported quarter, inclusive of a negative impact of $9.00 million due to a change in foreign exchange rates, compared to $278.30 million in Q3 FY16, slightly declining by 2.41%. The Company's adjusted operating income, excluding estimated accrual costs of a compliance auditor and WU Way expenses, was $290.00 million in the reported quarter compared to $298.00 million in Q3 FY16.
Western Union's net income advanced 8.52% to $235.60 million on a y-o-y basis in Q3 FY17 compared to $216.90 million in Q3 FY16. The Company's diluted earnings per share (EPS) were $0.51 in Q3 FY17 compared to $0.44 in Q3 FY16, reflecting a growth of 15.91%. Western Union's adjusted EPS, post-adjustment of non-recurring costs, were $0.53 in Q3 FY17 compared to $0.47 in Q3 FY16, reflecting a growth of 12.77%, and beating analysts' estimates of $0.44.
Segment Details
Western Union has three operating segments, namely: (i) Consumer-to-Consumer segment, (ii) Business Solutions segment, and (iii) Other segment.
The Company's Consumer-to-Consumer segment's revenue was $1.11 billion for Q3 FY17 compared to $1.10 billion in Q3 FY16, reflecting a marginal growth of 0.80%, due to a strengthened position of the US dollar against foreign currencies. The segment's operating income was $259.80 million in the reported quarter compared to $276.20 million in Q3 FY16, declining by 5.94%, due to an increase in employee incentive compensations and marketing expenses.
Western Union's Business Solutions segment reported revenues of $99.40 million in Q3 FY17 compared to $97.20 in Q3 FY16, slightly decreasing by 2.26%, due to the termination of partner contract. The segment's operating income surged 130.77% to $9.00 million in Q3 FY17 compared to $3.90 million in Q3 FY16, due to a reduction in amortization expenses and operating expenses.
The Company's Other segment posted revenues of $197.60 million in Q3 FY17 compared to $181.70 million in Q3 FY16, increasing by 8.75%, due to a growth in the Company's United States electronic bill payments and Argentina's cash-based bill payments. The segment's operating income increased 13.74% to $20.70 million on a y-o-y basis in Q3 FY17 compared to $18.20 million in Q3 FY16, due to segment's revenue increase and information technology efficiencies.
Cash Matters
Western Union had cash and cash equivalents of $1.03 billion as on September 30, 2017, compared to $1.28 billion as on September 30, 2016. The Company reported a net cash inflow from operating activities of $423.10 million for the nine months ending September 30, 2017, compared to $821.90 million for the same period ending September 30, 2016.
Western Union declared dividends of $0.175 per common share totaling $80.50 million in July 2017, which were paid on September 29, 2017. During the nine months ending September 30, 2017, the Company purchased 24.30 million shares under its share repurchase program, for a total of $475.00 million, at an average cost of $19.54, excluding commissions.
Western Union acquired Opus Software Technologies and assets of its affiliate on October 16, 2017, for approximately $25.00 million.
Outlook
For the fiscal year 2017, Western Union expects GAAP EPS to be in the range of $1.50 - $1.60, and adjusted EPS to be in the band of $1.75 - $1.85. The Company expects GAAP operating margin to be approximately 17.00%, adjusted operating margin to be approximately 20.00%, and cash flow from operating activities to be approximately $600.00 million.
Stock Performance Snapshot
December 12, 2017 - At Tuesday's closing bell, The Western Union's stock marginally fell 0.15%, ending the trading session at $19.50.
Volume traded for the day: 3.67 million shares, which was above the 3-month average volume of 3.40 million shares.
Stock performance in the previous three-month period – up 2.04%; and past six-month period – up 1.40%
After yesterday's close, The Western Union's market cap was at $9.02 billion.
Price to Earnings (P/E) ratio was at 42.48.
The stock has a dividend yield of 3.59%.
The stock is part of the Financial sector, categorized under the Credit Services industry. This sector was up 0.8% at the end of the session.
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