Western Union Delivers (WU)

Western Union Co. WU reported fourth quarter earnings that beat Wall Street estimates, but the stock isn't doing much in the extended hours. The company reported earnings of 37 cents, or 38 cents excluding items. This was better than the 35 cents Wall Street expected. Western Union reported revenues during the fourth quarter of $1.4 billion versus estimates of $1.33 billion. Western Union President and Chief Executive Officer Hikmet Ersek said, “We had a strong finish to 2010. Our consumer-to-consumer revenue trends accelerated, including the expected turnaround in U.S. domestic money transfer. For the year, we generated $1 billion in cash flow from operations, and returned $750 million to shareholders through stock repurchase and dividends. We also made progress on our key strategic priorities of growing retail channels, expanding electronic channels, developing our product portfolio, and improving processes and productivity.” Ersek continued, “The progress includes expansion of our agent network with premier banks in Europe and Russia and new strategic relationships in India. We also signed agreements to bring mobile money transfer to multiple countries across Africa and the Middle East, and add account based money transfer in China.” Ersek added, “Although there are still economic challenges in some parts of the world, in 2011 we anticipate our momentum to continue. For the full year, we expect stronger organic revenue growth, margin expansion, and continued meaningful return of capital to our shareholders, while at the same time providing for investment in the business to drive future growth.” Shares closed at $20.29 today, up 1 cent.