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Western Union (WU) Up 6.1% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Western Union (WU - Free Report) . Shares have added about 6.1% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Western Union due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for The Western Union Company before we dive into how investors and analysts have reacted as of late.
Western Union's Q2 Earnings Miss, Lowers Outlook
Western Union reported second-quarter 2025 adjusted earnings per share (EPS) of 42 cents, which missed the Zacks Consensus Estimate by 4.6%. The bottom line declined 4.5% year over year.
Total revenues were $1 billion, which fell 4% on a reported basis. Additionally, the top line missed the Zacks Consensus Estimate by 0.9%.
The weaker-than-expected quarterly results were affected by weak performance in the CMT segment, lower revenues from Iraq and a decline in the North America retail business. However, improvements in the consumer services unit and branded digital business, as well as lower operating expenses, partially offset the negatives.
Q2 Performance of WU
The adjusted operating margin remained steady at 19% in both the current and prior-year periods.
Total expenses dipped 5% year over year to $833.4 million and were lower than our estimate of $834.8 million. The year-over-year decline resulted from the lower cost of services and SG&A expenses.
Operating income of $192.7 million rose 1% year over year but lagged our estimate of $193.4 million.
Segment Analysis of WU
The CMT segment’s revenues fell 8% to $885 million. The metric missed the Zacks Consensus Estimate of $919.7 million.
Operating income was $167.7 million, which fell 12% year over year and also missed the consensus mark and our estimate of $180.4 million. The operating income margin decreased 100 bps year over year to 19%.
Transactions within the CMT segment declined 3% year over year, attributable to 9% transaction growth in the Branded Digital business. Branded Digital revenues, which accounted for 29% of CMT’s second-quarter revenues, improved 6% on a reported and adjusted basis.
The CS unit recorded revenues of $141.1 million, which rose 39% on a reported basis and 41% on an adjusted basis. The metric beat the Zacks Consensus Estimate of $115.1 million and our estimate of $111.5 million.
Operating income of $31.6 million grew from the year-ago figure of $11.1 million, higher than the consensus mark and our estimate of $19.8 million. The operating income margin of 22% rose from the year-ago figure of 11%.
WU’s Financial Position (As of June 30, 2025)
Western Union exited the second quarter with cash and cash equivalents of $1 billion, which deteriorated from $1.5 billion at the end of 2024. Total assets of $8 billion decreased from $8.4 billion at 2024-end.
Borrowings were $2.7 billion, down from $2.9 billion as of Dec. 31, 2024.
Total stockholders' equity of $883.6 million declined from the 2024-end figure of $968.9 million.
WU generated net cash from operations of $147.9 million in the first six months, which surged from the year-ago figure of $60.2 million.
Western Union’s Capital Deployment
Western Union rewarded its shareholders with more than $150 million in the form of dividends and share buybacks in the second quarter of 2025.
WU’s Lowered 2025 View
Management now anticipates adjusted revenues to be between $4.035 billion and $4.135 billion, lower than the earlier estimated range of $4.115-$4.215 billion, the midpoint of which indicates a 2.7% decline from the 2024 figure of $4.198 billion.
Adjusted EPS is now forecasted to be in the range of $1.65-$1.75, lower than the earlier anticipated range of $1.75-$1.85, the midpoint of which indicates a 2.3% decline from the 2024 reported figure of $1.74.
GAAP EPS is forecasted in the band of $1.45-$1.55, lower than the earlier anticipated band of $1.54-$1.64, the midpoint of which implies a 45.3% decline from the 2024 figure of $2.74.
The adjusted operating margin is still expected to be between 19% and 21%. The metric was 19% in 2024.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -6.13% due to these changes.
VGM Scores
Currently, Western Union has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Western Union has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
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Western Union (WU) Up 6.1% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Western Union (WU - Free Report) . Shares have added about 6.1% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Western Union due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for The Western Union Company before we dive into how investors and analysts have reacted as of late.
Western Union's Q2 Earnings Miss, Lowers Outlook
Western Union reported second-quarter 2025 adjusted earnings per share (EPS) of 42 cents, which missed the Zacks Consensus Estimate by 4.6%. The bottom line declined 4.5% year over year.
Total revenues were $1 billion, which fell 4% on a reported basis. Additionally, the top line missed the Zacks Consensus Estimate by 0.9%.
The weaker-than-expected quarterly results were affected by weak performance in the CMT segment, lower revenues from Iraq and a decline in the North America retail business. However, improvements in the consumer services unit and branded digital business, as well as lower operating expenses, partially offset the negatives.
Q2 Performance of WU
The adjusted operating margin remained steady at 19% in both the current and prior-year periods.
Total expenses dipped 5% year over year to $833.4 million and were lower than our estimate of $834.8 million. The year-over-year decline resulted from the lower cost of services and SG&A expenses.
Operating income of $192.7 million rose 1% year over year but lagged our estimate of $193.4 million.
Segment Analysis of WU
The CMT segment’s revenues fell 8% to $885 million. The metric missed the Zacks Consensus Estimate of $919.7 million.
Operating income was $167.7 million, which fell 12% year over year and also missed the consensus mark and our estimate of $180.4 million. The operating income margin decreased 100 bps year over year to 19%.
Transactions within the CMT segment declined 3% year over year, attributable to 9% transaction growth in the Branded Digital business. Branded Digital revenues, which accounted for 29% of CMT’s second-quarter revenues, improved 6% on a reported and adjusted basis.
The CS unit recorded revenues of $141.1 million, which rose 39% on a reported basis and 41% on an adjusted basis. The metric beat the Zacks Consensus Estimate of $115.1 million and our estimate of $111.5 million.
Operating income of $31.6 million grew from the year-ago figure of $11.1 million, higher than the consensus mark and our estimate of $19.8 million. The operating income margin of 22% rose from the year-ago figure of 11%.
WU’s Financial Position (As of June 30, 2025)
Western Union exited the second quarter with cash and cash equivalents of $1 billion, which deteriorated from $1.5 billion at the end of 2024. Total assets of $8 billion decreased from $8.4 billion at 2024-end.
Borrowings were $2.7 billion, down from $2.9 billion as of Dec. 31, 2024.
Total stockholders' equity of $883.6 million declined from the 2024-end figure of $968.9 million.
WU generated net cash from operations of $147.9 million in the first six months, which surged from the year-ago figure of $60.2 million.
Western Union’s Capital Deployment
Western Union rewarded its shareholders with more than $150 million in the form of dividends and share buybacks in the second quarter of 2025.
WU’s Lowered 2025 View
Management now anticipates adjusted revenues to be between $4.035 billion and $4.135 billion, lower than the earlier estimated range of $4.115-$4.215 billion, the midpoint of which indicates a 2.7% decline from the 2024 figure of $4.198 billion.
Adjusted EPS is now forecasted to be in the range of $1.65-$1.75, lower than the earlier anticipated range of $1.75-$1.85, the midpoint of which indicates a 2.3% decline from the 2024 reported figure of $1.74.
GAAP EPS is forecasted in the band of $1.45-$1.55, lower than the earlier anticipated band of $1.54-$1.64, the midpoint of which implies a 45.3% decline from the 2024 figure of $2.74.
The adjusted operating margin is still expected to be between 19% and 21%. The metric was 19% in 2024.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -6.13% due to these changes.
VGM Scores
Currently, Western Union has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Western Union has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.