Western Union (NYSE:WU) Issues FY 2025 Earnings Guidance

Key Points

• Western Union has updated its FY 2025 earnings guidance, forecasting earnings per share of 1.650-1.750, lower than the consensus estimate of 1.774.
• The company also issued revenue guidance of $4.0 billion-$4.1 billion, slightly below the consensus revenue estimate of $4.1 billion.
• Western Union announced a quarterly dividend of $0.235, reflecting an annual yield of 11.15%, with a payout ratio of 35.07%.

Western Union (NYSE:WU - Get Free Report) updated its FY 2025 earnings guidance on Monday. The company provided earnings per share guidance of 1.650-1.750 for the period, compared to the consensus earnings per share estimate of 1.774. The company issued revenue guidance of $4.0 billion-$4.1 billion, compared to the consensus revenue estimate of $4.1 billion.

Western Union Price Performance

WU traded down $0.15 on Monday, hitting $8.43. 12,668,277 shares of the stock were exchanged, compared to its average volume of 8,450,943. Western Union has a 12 month low of $7.99 and a 12 month high of $13.11. The business has a 50-day moving average of $8.84 and a two-hundred day moving average of $9.80. The company has a debt-to-equity ratio of 2.97, a current ratio of 1.15 and a quick ratio of 1.15. The firm has a market capitalization of $2.79 billion, a price-to-earnings ratio of 3.15, a PEG ratio of 1.48 and a beta of 0.65.

Western Union (NYSE:WU - Get Free Report) last posted its earnings results on Monday, July 28th. The credit services provider reported $0.42 EPS for the quarter, missing analysts' consensus estimates of $0.44 by ($0.02). Western Union had a return on equity of 77.19% and a net margin of 22.08%. Western Union's quarterly revenue was down 3.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.44 earnings per share. Sell-side analysts forecast that Western Union will post 1.79 EPS for the current fiscal year.

Western Union Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, June 30th. Investors of record on Monday, June 16th were given a $0.235 dividend. This represents a $0.94 annualized dividend and a yield of 11.15%. The ex-dividend date was Monday, June 16th. Western Union's payout ratio is currently 35.07%.

Analyst Ratings Changes

Several equities analysts have weighed in on WU shares. Monness Crespi & Hardt cut Western Union from a "neutral" rating to a "sell" rating and set a $7.50 price objective on the stock. in a research note on Thursday, April 24th. UBS Group reiterated a "neutral" rating and set a $10.50 target price (down from $11.00) on shares of Western Union in a research note on Thursday, April 24th. Susquehanna lowered their target price on Western Union from $12.00 to $11.00 and set a "neutral" rating on the stock in a research note on Thursday, April 24th. JMP Securities reiterated a "market perform" rating on shares of Western Union in a research note on Thursday, April 24th. Finally, Keefe, Bruyette & Woods lowered their target price on Western Union from $12.00 to $11.00 and set a "market perform" rating on the stock in a research note on Thursday, April 24th. Four investment analysts have rated the stock with a sell rating and eight have given a hold rating to the company's stock. Based on data from MarketBeat.com, Western Union currently has an average rating of "Hold" and an average target price of $10.33.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Focus Partners Wealth raised its holdings in Western Union by 93.5% in the first quarter. Focus Partners Wealth now owns 27,535 shares of the credit services provider's stock worth $291,000 after purchasing an additional 13,302 shares in the last quarter. Integrated Wealth Concepts LLC boosted its position in shares of Western Union by 15.5% during the first quarter. Integrated Wealth Concepts LLC now owns 39,859 shares of the credit services provider's stock valued at $422,000 after buying an additional 5,351 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of Western Union by 9.0% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,861,908 shares of the credit services provider's stock valued at $19,699,000 after buying an additional 154,110 shares during the last quarter. Finally, Goldman Sachs Group Inc. boosted its position in shares of Western Union by 27.4% during the first quarter. Goldman Sachs Group Inc. now owns 1,964,972 shares of the credit services provider's stock valued at $20,789,000 after buying an additional 422,715 shares during the last quarter. Hedge funds and other institutional investors own 91.81% of the company's stock.

About Western Union

The Western Union Company provides money movement and payment services worldwide. The company operates through Consumer Money Transfer and Consumer Services segments. The Consumer Money Transfer segment facilitates money transfers for international cross-border and intra-country transfers, primarily through a network of retail agent locations, as well as through websites and mobile devices.

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