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Western Union (WU) to Post Q2 Earnings: Here's What to Expect
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The Western Union Company (WU - Free Report) is set to report its second-quarter 2023 results on Jul 26, after the closing bell.
What Do the Estimates Say?
The Zacks Consensus Estimate for second-quarter earnings per share of 38 cents suggests a 25.5% decrease from the prior-year figure of 51 cents. The consensus mark remained stable over the past week. The consensus estimate for second-quarter revenues of $1.1 billion indicates an 8.1% decrease from the year-ago reported figure.
Western Union beat the consensus estimate for earnings in two of the trailing four quarters, met once and missed on the other occasion, with the average surprise being 12.2%. This is depicted in the graph below:
Before we get into what to expect for the to-be-reported quarter in detail, it’s worth taking a look at WU’s previous-quarter performance first.
Q1 Earnings Rewind
The leading global money transfer company reported adjusted earnings of 43 cents per share for the previous quarter, beating the Zacks Consensus Estimate by 30.3%. The quarterly results were supported by strength in the Middle East business, Evolve 2025’s momentum, lower consumer acquisition costs and transaction growth. However, adverse currency impact, discontinuation of operations across Russia and Belarus and promotional pricing activities partially offset the positives.
Lower transactions in multiple regions are expected to have affected WU’s C2C Segment in the second quarter. The suspension of operations in Russia and Belarus is anticipated to have been a major contributor to that decline. Also, reduced transactions in Europe, North America and Asia Pacific regions are expected to have affected the metric, partially offset by strength in Latin American and Caribbean regions and the Middle East, Africa and South Asia operations.
Our estimate for C2C transactions indicates an almost 7% year-over-year decline to 63.5 million in the second quarter. This is likely to have affected the segment’s revenues and profits. Our estimate for the unit’s revenues is pegged at $950.4 million, indicating a 7.4% decrease from the year-ago period. Furthermore, operating income from the segment is expected to have decreased almost 30% from $225.6 million a year ago.
With divesting efforts for its Business Solutions operations in the second quarter, revenues and profits from the unit are expected to have declined significantly. Our estimate for revenues from this segment signals an 81.5% year-over-year decrease.
The above-mentioned factors are likely to have positioned the company for not only a year-over-year decline but also make an earnings beat uncertain. However, the Other segment, which includes Western Union’s bill payments businesses, as well as retail money order services, is likely to have provided some breathing room for the company in the quarter under review.
Our estimate for revenues from the Other segment is pegged at $77.8 million, signaling almost 3% year-over-year growth. We expect operating income from the segment to amount to $24.6 million in the quarter under review. Also, our estimate for total operating expense predicts a 2.6% decline from a year ago, which will provide an impetus to the margins.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Western Union this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate currently stands at 38 cents per share, in line with the Zacks Consensus Estimate.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Western Union currently carries a Zacks Rank #3.
Stocks to Consider
While an earnings beat looks uncertain for Western Union, here are some companies from the broader Business Services space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
The Zacks Consensus Estimate for S&P Global’s bottom line for the to-be-reported quarter is pegged at $3.11 per share, indicating 10.7% year-over-year growth. SPGI beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 3.1%.
Booz Allen Hamilton Holding Corporation (BAH - Free Report) has an Earnings ESP of +3.20% and a Zacks Rank of 2.
The Zacks Consensus Estimate for Booz Allen’s bottom line for the to-be-reported quarter is pegged at $1.25 per share, which suggests a 10.6% year-over-year jump. BAH beat earnings estimates in all the past four quarters, with an average of 10.2%.
Avis Budget Group, Inc. (CAR - Free Report) has an Earnings ESP of +1.46% and is a Zacks #2 Ranked player.
The Zacks Consensus Estimate for Avis Budget’s bottom line for the to-be-reported quarter is pegged at $9.78 per share, which witnessed one upward estimate revision over the past month against no movement in the opposite direction. Furthermore, the consensus mark for CAR’s revenues is pegged at $3.2 billion.
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Western Union (WU) to Post Q2 Earnings: Here's What to Expect
The Western Union Company (WU - Free Report) is set to report its second-quarter 2023 results on Jul 26, after the closing bell.
What Do the Estimates Say?
The Zacks Consensus Estimate for second-quarter earnings per share of 38 cents suggests a 25.5% decrease from the prior-year figure of 51 cents. The consensus mark remained stable over the past week. The consensus estimate for second-quarter revenues of $1.1 billion indicates an 8.1% decrease from the year-ago reported figure.
Western Union beat the consensus estimate for earnings in two of the trailing four quarters, met once and missed on the other occasion, with the average surprise being 12.2%. This is depicted in the graph below:
The Western Union Company Price and EPS Surprise
The Western Union Company price-eps-surprise | The Western Union Company Quote
Before we get into what to expect for the to-be-reported quarter in detail, it’s worth taking a look at WU’s previous-quarter performance first.
Q1 Earnings Rewind
The leading global money transfer company reported adjusted earnings of 43 cents per share for the previous quarter, beating the Zacks Consensus Estimate by 30.3%. The quarterly results were supported by strength in the Middle East business, Evolve 2025’s momentum, lower consumer acquisition costs and transaction growth. However, adverse currency impact, discontinuation of operations across Russia and Belarus and promotional pricing activities partially offset the positives.
Now let’s see how things have shaped up before the second-quarter earnings announcement.
Q2 Factors to Note
Lower transactions in multiple regions are expected to have affected WU’s C2C Segment in the second quarter. The suspension of operations in Russia and Belarus is anticipated to have been a major contributor to that decline. Also, reduced transactions in Europe, North America and Asia Pacific regions are expected to have affected the metric, partially offset by strength in Latin American and Caribbean regions and the Middle East, Africa and South Asia operations.
Our estimate for C2C transactions indicates an almost 7% year-over-year decline to 63.5 million in the second quarter. This is likely to have affected the segment’s revenues and profits. Our estimate for the unit’s revenues is pegged at $950.4 million, indicating a 7.4% decrease from the year-ago period. Furthermore, operating income from the segment is expected to have decreased almost 30% from $225.6 million a year ago.
With divesting efforts for its Business Solutions operations in the second quarter, revenues and profits from the unit are expected to have declined significantly. Our estimate for revenues from this segment signals an 81.5% year-over-year decrease.
The above-mentioned factors are likely to have positioned the company for not only a year-over-year decline but also make an earnings beat uncertain. However, the Other segment, which includes Western Union’s bill payments businesses, as well as retail money order services, is likely to have provided some breathing room for the company in the quarter under review.
Our estimate for revenues from the Other segment is pegged at $77.8 million, signaling almost 3% year-over-year growth. We expect operating income from the segment to amount to $24.6 million in the quarter under review. Also, our estimate for total operating expense predicts a 2.6% decline from a year ago, which will provide an impetus to the margins.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Western Union this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate currently stands at 38 cents per share, in line with the Zacks Consensus Estimate.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Western Union currently carries a Zacks Rank #3.
Stocks to Consider
While an earnings beat looks uncertain for Western Union, here are some companies from the broader Business Services space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
S&P Global Inc. (SPGI - Free Report) has an Earnings ESP of +1.58% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for S&P Global’s bottom line for the to-be-reported quarter is pegged at $3.11 per share, indicating 10.7% year-over-year growth. SPGI beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 3.1%.
Booz Allen Hamilton Holding Corporation (BAH - Free Report) has an Earnings ESP of +3.20% and a Zacks Rank of 2.
The Zacks Consensus Estimate for Booz Allen’s bottom line for the to-be-reported quarter is pegged at $1.25 per share, which suggests a 10.6% year-over-year jump. BAH beat earnings estimates in all the past four quarters, with an average of 10.2%.
Avis Budget Group, Inc. (CAR - Free Report) has an Earnings ESP of +1.46% and is a Zacks #2 Ranked player.
The Zacks Consensus Estimate for Avis Budget’s bottom line for the to-be-reported quarter is pegged at $9.78 per share, which witnessed one upward estimate revision over the past month against no movement in the opposite direction. Furthermore, the consensus mark for CAR’s revenues is pegged at $3.2 billion.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.