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

Key Points

• Western Union has issued its FY 2025 earnings guidance, projecting earnings per share (EPS) between $1.650 and $1.750, which is slightly below the analyst consensus of $1.700.
• The company expects revenue in the range of $4.0 billion to $4.1 billion, aligning closely with the consensus estimate of $4.1 billion.
• Western Union recently declared a quarterly dividend of $0.235 per share, resulting in an annualized dividend yield of 11.5%.

Western Union (NYSE:WU - Get Free Report) issued an update on its FY 2025 earnings guidance on Thursday morning. The company provided earnings per share guidance of 1.650-1.750 for the period, compared to the consensus earnings per share estimate of 1.700. The company issued revenue guidance of $4.0 billion-$4.1 billion, compared to the consensus revenue estimate of $4.1 billion.

Western Union Trading Up 0.4%

Shares of NYSE WU traded up $0.03 during midday trading on Thursday, reaching $8.16. 15,156,839 shares of the stock were exchanged, compared to its average volume of 7,974,018. The business has a 50-day simple moving average of $8.31 and a two-hundred day simple moving average of $8.81. The company has a market capitalization of $2.64 billion, a price-to-earnings ratio of 3.09, a P/E/G ratio of 2.78 and a beta of 0.61. Western Union has a 12 month low of $7.85 and a 12 month high of $11.94. The company has a debt-to-equity ratio of 3.11, a current ratio of 1.15 and a quick ratio of 1.15.

Western Union (NYSE:WU - Get Free Report) last announced its quarterly earnings results on Thursday, October 23rd. The credit services provider reported $0.47 earnings per share for the quarter, topping analysts' consensus estimates of $0.43 by $0.04. Western Union had a net margin of 21.83% and a return on equity of 66.11%. Western Union has set its FY 2025 guidance at 1.650-1.750 EPS. As a group, equities research analysts expect that Western Union will post 1.79 EPS for the current year.

Western Union Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 30th. Stockholders of record on Tuesday, September 16th were paid a dividend of $0.235 per share. The ex-dividend date was Tuesday, September 16th. This represents a $0.94 annualized dividend and a dividend yield of 11.5%. Western Union's payout ratio is currently 35.61%.

Analyst Ratings Changes

WU has been the subject of several research analyst reports. JPMorgan Chase & Co. set a $10.00 target price on shares of Western Union in a report on Tuesday, July 29th. Citigroup began coverage on shares of Western Union in a research report on Wednesday. They set a "neutral" rating and a $9.00 price objective for the company. Weiss Ratings upgraded shares of Western Union from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Wednesday, October 8th. Barclays set a $8.00 price target on shares of Western Union and gave the company an "underweight" rating in a research report on Thursday, July 31st. Finally, Morgan Stanley decreased their price objective on shares of Western Union from $9.00 to $7.00 and set an "underweight" rating for the company in a research report on Tuesday, July 29th. Ten equities research analysts have rated the stock with a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Reduce" and an average target price of $8.55.

Insiders Place Their Bets

In other news, CEO Devin Mcgranahan bought 176,470 shares of the stock in a transaction dated Thursday, August 21st. The stock was bought at an average price of $8.49 per share, for a total transaction of $1,498,230.30. Following the completion of the acquisition, the chief executive officer directly owned 913,125 shares in the company, valued at approximately $7,752,431.25. This trade represents a 23.96% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CFO Matthew Cagwin bought 17,500 shares of the stock in a transaction dated Monday, August 18th. The stock was purchased at an average price of $8.36 per share, with a total value of $146,300.00. Following the acquisition, the chief financial officer owned 225,611 shares of the company's stock, valued at $1,886,107.96. The trade was a 8.41% increase in their ownership of the stock. The disclosure for this purchase can be found here. 1.58% of the stock is currently owned by company insiders.

Institutional Trading of Western Union

A number of large investors have recently added to or reduced their stakes in WU. Snowden Capital Advisors LLC purchased a new stake in Western Union during the second quarter worth about $110,000. EP Wealth Advisors LLC increased its stake in shares of Western Union by 69.0% in the second quarter. EP Wealth Advisors LLC now owns 19,299 shares of the credit services provider's stock worth $162,000 after purchasing an additional 7,879 shares in the last quarter. Caxton Associates LLP purchased a new position in shares of Western Union in the second quarter worth about $253,000. Focus Partners Wealth increased its stake in shares of 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. Finally, Prudential Financial Inc. increased its stake in shares of Western Union by 24.7% in the second quarter. Prudential Financial Inc. now owns 36,874 shares of the credit services provider's stock worth $310,000 after purchasing an additional 7,314 shares in 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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