WU 1Q EPS In Line With Oppenheimer Expectations

Western Union Co. WU reported 1Q11 EPS of $0.35 that beat the Street by $0.01 “and was in line with our expectations,” Oppenheimer reports. “Revenue and operating margins were each modestly shy of our estimates although operating margins expanded 70bps Y/Y due to restructuring savings and operating efficiencies,” Oppenheimer writes. “Constant currency revenue grew 4% Y/Y led by growth in the Americas (6% Y/Y) and APAC (14% Y/Y), while EMEA growth was a modest 2% Y/Y reflecting some headwind in the Middle East. “Overall, we remain encouraged by the gradual improvement in recent trends and believe WU is beginning to benefit from a gradual cyclical remittance rebound, and the repositioning actions in the US.” Western Union closed Tuesday at $21.53.