Western Union Issues Guidance; Increases Dividend, Approves $1.2 Bln Buyback

Andrew Cummings
February 12, 2017

On 08/03/2016, the stock reported the EPS of $0.42 where Analysts were projecting the EPS to be $0.4 showing a difference of $0.02.

WESTERN UNION COMPANY (WU) has received mean Analyst rating of 3.19 from polled analysts at Reuters One Month Ago.

On 05/03/2016, Analysts were suspecting EPS of $0.38/share where The Western Union Company (NYSE:WU) reported its Actual EPS of $0.37.

Relative strength index (RSI-14) for The Western Union Company's (WU) is at 45.19. The count of Hold ratings in that period was 5. Nine equities research analysts have rated the stock with a sell rating, eleven have issued a hold rating and one has given a buy rating to the stock. Given the stock's recent action, it seemed like a good time to take a closer look at the company's recent data.

Other hedge funds and other institutional investors have also made changes to their positions in the company. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 11.38% with $482.87 Million sitting short, betting on future declines. The number of shares now owned by investors are 487 mln. Canada Pension Plan Investment Board raised its stake in shares of Western Union Company (The) by 147.8% in the third quarter. Russell Investments Group Ltd. bought a new stake in shares of Western Union Company (The) during the fourth quarter valued at $24,540,000.

Nonetheless, and in the immediate aftermath of reporting, investor reaction in The Western Union Company (WU) stock has proven to be much more bearish.

In the fourth quarter, the Company delivered revenue of $1.4 billion, reflecting a decline of 1% compared to past year, or an increase of 4% on a constant currency basis. The stock has a 50 day moving average price of $21.10 and a 200-day moving average price of $20.80. This Business Services Sector stock now has the Market Capitalization of 9.93 Billion.

In a separate but related court case, Western Union settled with the U.S. Federal Trade Commission and U.S. Department of Justice for $586 million over claims related to fraud-induced transfers. The estimated EPS for the current quarter is said to be $0.43. Western Union Company (The) had a return on equity of 61.39% and a net margin of 15.11%. The company had revenue of $1.40 billion for the quarter, compared to analysts' expectations of $1.37 billion. EPS or Earning per Share stands at $1.65. Narrow down focus to firm performance, its weekly performance was -1.39% and monthly performance was 1.43%. Full-year profit views are for The Western Union Company to earn $1.65 in current year and grow profits by almost -1.2% over last year's earnings of $1.67. Shareholders of record on Friday, March 17th will be issued a $0.175 dividend. The ex-dividend date was Thursday, December 15th.

The Western Union Company (NYSE:WU) reported its previous quarter on 11/01/2016 where it reported the Actual Earnings of $0.44. This represents a $0.70 annualized dividend and a dividend yield of 3.55%. Western Union Company (The)'s dividend payout ratio (DPR) is presently 38.79%.

TRADEMARK VIOLATION WARNING: "Western Union Company (The) (WU) Shares Gap Down After Analyst Downgrade" was published by BBNS and is owned by of BBNS. If you are reading this piece of content on another website, it was stolen and reposted in violation of global trademark and copyright law. Together with its Vigo, Orlandi Valuta, Pago Facil and Western Union Business Solutions branded payment services, Western Union provides consumers and businesses with fast, reliable and convenient ways to send and receive money around the world, to send payments and to purchase money orders.

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