Western Union Falls as Fund-Transfer Firm Forecasts Revenue Drop
Western Union Co., the world’s biggest money-transfer business, fell after the company forecast continued revenue declines in 2013.
The shares slid 3.3 percent in extended trading today after Englewood, Colorado-based Western Union reported fourth-quarter results. Net income plunged 47 percent to $237.9 million, or 40 cents a share, from $452.3 million, or 73 cents, a year earlier, the company said in a statement. The average estimate of 28 analysts surveyed by Bloomberg was 35 cents.
The company said it expects “low single digit” revenue declines in 2013 and for sales and profit growth to resume in 2014 and 2015. The firm projected full-year earnings per share of $1.33 to $1.43.
“The strategic actions we are implementing in 2013 will position us well for the future and drive revenue and profit growth in 2014 and beyond,” Chief Executive Officer Hikmet Ersek, 52, said in the statement.
Western Union dropped 47 cents to $13.87 at 5:35 p.m. in New York. The shares had declined 18 percent in the past year through the close of regular trading, compared with a 13 percent gain for the Standard & Poor’s 500 Index.
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