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Western Union Issues Outlook; Raises Quarterly Dividend - Quick Facts

The Western Union Company (WU) affirmed its three-year financial targets including operating margin of approximately 23% in 2022 and a low double-digit EPS CAGR for the three years ending 2022.

The company's 2020 outlook calls for margin expansion and adjusted EPS growth in the teens. Adjusted EPS is anticipated in a range of $1.95 to $2.05, while adjusted operating margin is projected to be approximately 21%, for the fiscal year. In adjusted constant currency, revenue is expected to grow in low single-digit, excluding any benefit related to Argentina inflation. Analysts polled by Thomson Reuters expect the company to report profit per share of $1.97. Analysts' estimates typically exclude special items.

Fourth-quarter adjusted earnings per share was $0.38 compared to $0.51, prior year. Adjusted operating margin was 18.7% compared to 19.9%. The company said the decrease in adjusted operating margin was primarily due to the higher marketing investment and the Speedpay divestiture.

Fourth-quarter revenue was $1.3 billion, a decline of 7% on a reported basis or an increase of 3% in adjusted constant currency terms.

The Western Union Company increased its quarterly dividend by 13% to $0.225 per common share, payable March 31, 2020 to shareholders of record at the close of business on March 17, 2020.

Shares of The Western Union Company were down 3% after hours.

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