Western Union expects 1 pct gain in 3rd-qtr revenue as transactions rise; backs year outlook

Western Union sees 3Q revenue rising 1 percent

ENGLEWOOD, Colo. — The Western Union Co. on Wednesday said its third-quarter revenue rose 1 percent, as the number of transactions it processed increased.

That implies the money transfer company expects to post revenue of about $1.33 billion for the quarter ending Sept. 30, based on reported revenue of $1.31 billion in the 2009 third quarter.

Analysts polled by Thomson Reuters, on average, expect the company to post revenue of $1.31 billion when it reports its full third-quarter results on Oct. 26.

Western Union said overall transactions are expected to rise 10 percent for the third quarter. International transactions are seen gaining 7 percent for the quarter, while domestic transactions are forecast to leap 35 percent. Transactions with Mexico are expected to gain 2 percent.

Consumer to consumer transactions increased by 1 percent, and business payments rose 4 percent.

The company affirmed its full-year outlook for profit of $1.24 to $1.29 per share, or 1.31 to $1.36 per share excluding restructuring charges. Western Union expects revenue to range from down 2 percent to up 1 percent from 2009, implying a range of $4.98 billion to $5.13 billion.

Analysts expect profit of $1.36 per share, on average, with estimates falling between $1.33 and $1.38.

Wall Street expects revenue of $5.13 billion for the year, with estimate ranging from $5.07 billion to $5.19 billion.

In aftermarket electronic trading, Western Union shares rose 10 cents to $17.50, after closing the regular session up 4 cents at $17.40.