Western Union's stock plummeted 13.33% during intraday trading on Friday, following the release of its first-quarter earnings report.
The money transfer services provider reported adjusted earnings per share of $0.25 for the quarter, significantly missing the consensus analyst estimate of $0.39. This represents a sharp decline from the $0.41 per share reported in the same period last year. The company attributed the profit pressure to macroeconomic headwinds impacting its retail business in the Americas, citing factors such as decreased fixed cost coverage at agent locations, timing mismatches in supplier incentives, increased costs from new strategic partnerships, significant foreign exchange losses, and a higher tax rate.
While quarterly revenue of $982.7 million slightly exceeded analyst expectations, the substantial earnings miss and the outlined operational challenges drove a negative investor response. The company reiterated its full-year performance guidance.
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