Shares of Western Union Co. rose Friday after the Englewood, Colo., company raised its profit targets and authorized buying back an additional $1 billion of stock.
Western Union said that its earnings per share will increase as much as 18% during the next three to five years, and that its revenue growth this year will be close to the high end of its target range of 9% to 11%.
It trimmed its forecast for this year. It now expects to earn $1.18 to $1.22 a share, compared with its previous forecast of $1.19 to $1.23.
The forecasts include $79 million, or 7 cents a share, of costs associated with closing offices, including one in San Francisco.
In April it said its first-quarter profits rose 7.2% from a year earlier on growth in China and India. The global remittance market is expected to reach $400 billion this year, and is growing at a 8% annual rate, the company said.
Western Union said Friday that it remains "committed to returning cash to shareholders through stock buybacks and dividends," and that it has repurchased $1.3 billion of shares already. It now has authorization to buy back $1.7 billion more.
By midafternoon Western Union's stock had climbed 8.51% from Thursday's close, to $25.13.
