J.P. Morgan Not Surprised By Western Union's 1Q Results (WU)

According to J.P. Morgan, Western Union's WU first quarter earnings were on track with its originally estimated figures. J.P. Morgan explains, “1Q organic revenue growth was inline at 4% (vs. JPMe 4%), with most corridor trends essentially inline with our estimates.” Core C2B trends improved which came as a pleasant surprise. J.P. Morgan suggests, “We also believe core C2B drove margin expansion in the overall ‘business solutions' segment (from 13.3% in 4Q10 to 16.5% in 1Q11), implying Custom House continued to operate at high operating loss (potentially in 20s).” J.P. Morgan maintains its Overweight rating and $24 PT on Western Union. Western Union is currently trading at $21.01.