The Western Union Company WU reported first-quarter 2016 operating earnings per share of 37 cents that missed the Zacks Consensus Estimate by 2.7%. Earnings also declined 5.1% year on year mainly due to lower operating income from Consumer-to-Consumer and Consumer-to Business segments.The Western Union Company (WU) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompanyTotal revenue of Western Union came in at $1.3 billion, slightly below the Zacks Consensus Estimate. Revenues declined 2% year over year on reported basis due to adverse impact of the strong U.S. dollar. Nonetheless, revenues increased 3% on a constant currency basis.The top-line growth was also limited by a 3% decline in transaction fees and a 3% decrease in other revenues, offset by a 2% rise in foreign exchange revenues.Western Union’s total expenses dipped 1% year over year to $1billionowing to a decrease in selling, general and administrative expenses.Operating margin came in at 19.9% in the quarter compared with 20.6% in the prior-year quarter due to impact of foreign exchange and higher investment in technology.Segment UpdateThe Consumer-to-Consumer segment, which is the main contributor to thecompany’s top line, reported a 2% decline in revenues to $1 billion due to lower transaction fees and other revenues. Operating income declined 4% to $231 million.In the Consumer-to-Business segment, revenues declined 1% year over year to $156 million due to lower foreign exchange and other revenues. Operating income plunged 23% year over year to $22.9 million.Business Solutions revenues inched up 1% year over year to $99.2 million in the quarterdue to higher foreign exchange revenues, partially offset by lower transaction fees and other revenues. The segment reported operating income of $2.4 million in the quarter, up 15% year on year.Financial UpdateCash and cash equivalents as of Mar 31, 2016 were $1.2 billion, down 11.8% from the 2015-end level.Borrowing remained almost unchanged from the 2015-end level at $3.2 billion.As of Mar 31, 2016, stockholders' equity was $1.2 billion, down11.88% from year-end 2015.Western Union generated cash flow from operating activities of $212.7 million as of Mar 31, 2016 compared with $211.8 million in the prior-year quarter.Share Repurchase and Dividend UpdateIn the reported quarter, the company spent $240 million for share buybacks and $79 million as dividends, thereby returning $319 million to its shareholders.In the first quarter, the company announced a quarterly cash dividend of 16 cents per common share, up 3% from the prior-year payout.2016 GuidanceWestern Union mostly reiterated its full-year outlook. However, the company increased its GAAP revenue outlook by $50 million based on the positive movement of several foreign currencies against the U.S. dollar. The company expects low to mid-single digit increase in revenues on a constant currency basis. GAAP revenues change is expected around 300 basis points lower than constant currency.Impact of increased revenues on operating profit from is expected to be partially offset by a reduction in hedge benefits. Hedge gains are now projected at $40 million instead of $50 million. The earnings per share projection, after including the negative impact of around 15 cents associated with modifications in foreign exchange rates and lesser hedge benefits, lies between $1.58 and $1.70. The company expects cash flow from operating activities of about $1 billion. This outlook excludes about $100 million final tax payments related to the agreement announced with the U.S. Internal Revenue Service in Dec 2011. Either a portion or the entire payment is likely to be made in 2016.Zacks Rank and Performance of Other Financial Transaction Services ProvidersWestern Union currently carries a Zacks Rank # 2 (Buy). The bottom line at American Express Co. AXP, MoneyGram International MGI and Visa Inc V beat their respective Zacks Consensus Estimate for the quarter ending as of Mar 31, 2016.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MONEYGRAM INTL (MGI): Free Stock Analysis Report AMER EXPRESS CO (AXP): Free Stock Analysis Report VISA INC-A (V): Free Stock Analysis Report WESTERN UNION (WU): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research