William Blair Decreases Earnings Estimates for Western Union

Key Points

• William Blair has reduced its Q1 2026 earnings per share estimate for Western Union from $0.42 to $0.36, while also projecting lower earnings for subsequent quarters.
• The company recently reported Q2 earnings that missed analysts' expectations, posting $0.42 earnings per share against a consensus of $0.44.
• Research analysts are generally bearish on Western Union, with several firms lowering their target prices significantly, and the stock currently holds a consensus rating of "Hold" with a target price of $8.61.

The Western Union Company (NYSE:WU - Free Report) - Investment analysts at William Blair dropped their Q1 2026 earnings per share estimates for Western Union in a research report issued to clients and investors on Monday, August 11th. William Blair analyst C. Kennedy now forecasts that the credit services provider will post earnings per share of $0.36 for the quarter, down from their prior forecast of $0.42. The consensus estimate for Western Union's current full-year earnings is $1.79 per share. William Blair also issued estimates for Western Union's Q2 2026 earnings at $0.37 EPS, Q3 2026 earnings at $0.36 EPS, Q4 2026 earnings at $0.38 EPS and FY2027 earnings at $1.78 EPS.

Western Union (NYSE:WU - Get Free Report) last posted its quarterly earnings data on Monday, July 28th. The credit services provider reported $0.42 earnings per share for the quarter, missing analysts' consensus estimates of $0.44 by ($0.02). Western Union had a return on equity of 66.11% and a net margin of 21.83%. The company had revenue of $1.03 billion for the quarter, compared to analyst estimates of $1.04 billion. During the same period in the previous year, the business posted $0.44 earnings per share. The firm's revenue was down 3.8% compared to the same quarter last year.

A number of other equities research analysts have also recently commented on WU. Morgan Stanley lowered their target price on Western Union from $9.00 to $7.00 and set an "underweight" rating on the stock in a report on Tuesday, July 29th. Monness Crespi & Hardt decreased their price objective on Western Union from $7.50 to $7.00 and set a "sell" rating on the stock in a research note on Tuesday, July 29th. Royal Bank Of Canada cut their target price on shares of Western Union from $13.00 to $9.00 and set a "sector perform" rating for the company in a research note on Tuesday, July 29th. JPMorgan Chase & Co. set a $10.00 price target on shares of Western Union in a research note on Tuesday, July 29th. Finally, Susquehanna lowered their price target on shares of Western Union from $11.00 to $9.00 and set a "neutral" rating for the company in a report on Tuesday, July 29th. Four research analysts have rated the stock with a sell rating and eight have assigned a hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $8.61.

Western Union Stock Performance

NYSE:WU opened at $8.27 on Tuesday. The firm has a market cap of $2.67 billion, a price-to-earnings ratio of 3.13, a price-to-earnings-growth ratio of 2.76 and a beta of 0.61. 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 has a 1-year low of $7.89 and a 1-year high of $12.40. The firm's fifty day moving average price is $8.53 and its 200 day moving average price is $9.63.

Western Union Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, June 30th. Shareholders of record on Monday, June 16th were paid a dividend of $0.235 per share. The ex-dividend date of this dividend was Monday, June 16th. This represents a $0.94 dividend on an annualized basis and a yield of 11.4%. Western Union's dividend payout ratio (DPR) is currently 35.61%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Dynamic Technology Lab Private Ltd purchased a new position in Western Union in the second quarter valued at approximately $1,380,000. WBI Investments LLC increased its position in shares of Western Union by 7.0% in the second quarter. WBI Investments LLC now owns 103,798 shares of the credit services provider's stock worth $874,000 after acquiring an additional 6,798 shares in the last quarter. Rockefeller Capital Management L.P. raised its stake in shares of Western Union by 10.7% in the 2nd quarter. Rockefeller Capital Management L.P. now owns 267,160 shares of the credit services provider's stock valued at $2,249,000 after acquiring an additional 25,888 shares during the period. Ontario Teachers Pension Plan Board lifted its stake in shares of Western Union by 4.7% during the second quarter. Ontario Teachers Pension Plan Board now owns 89,729 shares of the credit services provider's stock worth $756,000 after purchasing an additional 4,053 shares in the last quarter. Finally, Intech Investment Management LLC acquired a new stake in shares of Western Union in the second quarter valued at about $560,000. Institutional investors and hedge funds 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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