Western Union Earnings: Results Are Still Weak, but Some Positive Signs

Western Union's first-quarter results were not impressive in an absolute sense, but contained some signs that the company may be working through its recent issues and heading toward stabilization. Overall revenue was down 10% year over year on a reported basis, but only 1% excluding currency effects and divestitures, as an ongoing decline in the core money transfer business was partially offset by growth in other businesses. We will maintain our $18 fair value estimate and wide moat rating.