Money-transfer giant The Western Union Company (WU) reported an 11% rise in profit in the third quarter, but said it expects a weak fourth quarter and lowered its outlook for the year.
Western Union reported earnings of $240.8 million, or 33 cents per share, compared with $216.3 million, or 28 cents per share, a year ago. The company’s revenue climbed to $1.38 billion, up 10% from last quarter.
The results were in line with Wall Street’s estimates, as analysts polled by Thomson Reuters were expecting a profit of 34 cents per share on $1.38 billion in sales.
The consumer-to-consumer business, which spans 200 countries and accounts for 85% of the company’s revenue, stalled a bit as China and some European nations suffered slowing growth. The company said that the softening was partially offset by strong growth in the Middle East, India and Philippines.
The company’s consumer-to-business segment, which represents 13% of revenue, was down 2% from a year ago. Western Union said its U.S. bill payment business is declining, “as many more American consumers who would use this service are currently unable to pay their bills and unable to obtain new credit.”
Citing a tempering of transaction growth rates and weakness in the fourth quarter, the company now expects its earnings per share to fall between $1.23 and $1.25 for the year. Its prior forecast was $1.22 to $1.26 per share.
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