Western Union Earnings: Underlying Results Hold Steady

Ignoring some transitory impacts, Western Union largely maintained its recent path in the fourth quarter. Excluding the divestiture of the business solutions segment, overall revenue declined 1% year over year. Overall, though, we think the business is showing signs that it is stabilizing and potentially setting the stage for a longer-term return to modest growth. We will maintain our $17 fair value estimate for the narrow-moat business and see shares as materially undervalued.