Western Union Falls on 2013 Forecast: Denver MoverElizabeth Dexheimer
Western Union Co., the world’s biggest money-transfer business, fell in New York trading after the company forecast that revenue will decline in 2013.
The shares slid 3 percent to $13.91 at 9:33 a.m. after Englewood, Colorado-based Western Union reported fourth-quarter results yesterday. Net income fell 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.
Western Union said it expects “low single digit” revenue declines in 2013 and for sales and profit growth to resume in 2014 and 2015. Fourth-quarter revenue slid 0.5 percent to $1.42 billion. The firm projected full-year 2013 earnings per share of $1.33 to $1.43, compared with the average estimate of $1.47 in the Bloomberg survey.
“Investors will likely balk at 2013 EPS guidance,” Andrew Jeffrey, analyst at SunTrust Banks Inc., said in a note today. “Western Union faces long-term challenges.”
The shares have declined 21 percent in the past year, compared with a 13 percent gain for the Standard & Poor’s 500 Index.