Zacks Research Expects Weaker Earnings for Western Union

Key Points

• Zacks Research lowered Western Union’s Q1 2027 EPS estimate to $0.33 from $0.36 and maintained a “Strong Sell” rating, adding to concerns about the company’s earnings outlook.
• Western Union recently missed quarterly expectations, reporting $0.31 EPS versus the $0.42 consensus, while revenue fell 1.3% year over year to $1.01 billion. Other analysts have also cut price targets, with the stock carrying an average “Strong Sell” rating and a $7.55 target.
• The company announced a quarterly dividend of $0.235, equivalent to a 12.5% annualized yield, though its 76.42% payout ratio raises questions about long-term sustainability amid competitive and regulatory pressures.

The Western Union Company (NYSE:WU - Free Report) - Equities researchers at Zacks Research dropped their Q1 2027 earnings per share estimates for Western Union in a report released on Thursday, August 13th. Zacks Research analyst Team now forecasts that the credit services provider will post earnings per share of $0.33 for the quarter, down from their prior estimate of $0.36. Zacks Research has a "Strong Sell" rating on the stock. The consensus estimate for Western Union's current full-year earnings is $1.29 per share. Zacks Research also issued estimates for Western Union's Q2 2027 earnings at $0.36 EPS, Q4 2027 earnings at $0.46 EPS, Q1 2028 earnings at $0.32 EPS and Q2 2028 earnings at $0.40 EPS.

A number of other research analysts also recently issued reports on WU. Royal Bank Of Canada decreased their price target on shares of Western Union from $9.00 to $8.00 and set a "sector perform" rating for the company in a research note on Friday, July 31st. Morgan Stanley reduced their price objective on shares of Western Union from $7.00 to $6.00 and set an "underweight" rating on the stock in a report on Friday, July 31st. Citigroup decreased their price objective on shares of Western Union from $8.50 to $7.00 and set a "neutral" rating for the company in a research report on Monday, August 3rd. Monness Crespi & Hardt reissued a "sell" rating and issued a $6.00 target price on shares of Western Union in a report on Friday, July 31st. Finally, Weiss Ratings upgraded Western Union from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, August 3rd. Six research analysts have rated the stock with a Hold rating and eight have given a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Strong Sell" and an average price target of $7.55.

Western Union Stock Performance

Shares of Western Union stock opened at $7.49 on Friday. The business has a 50-day simple moving average of $7.62 and a 200-day simple moving average of $8.60. The company has a debt-to-equity ratio of 2.95, a quick ratio of 1.12 and a current ratio of 1.12. Western Union has a one year low of $6.27 and a one year high of $10.35. The company has a market cap of $2.34 billion, a PE ratio of 6.09 and a beta of 0.47.

Western Union (NYSE:WU - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The credit services provider reported $0.31 earnings per share for the quarter, missing the consensus estimate of $0.42 by ($0.11). The company had revenue of $1.01 billion for the quarter, compared to analysts' expectations of $1.02 billion. Western Union had a return on equity of 50.89% and a net margin of 9.79%.Western Union's revenue for the quarter was down 1.3% compared to the same quarter last year. During the same quarter last year, the company earned $0.37 EPS. Western Union has set its FY 2026 guidance at 1.250-1.350 EPS.

Western Union Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 16th will be issued a $0.235 dividend. This represents a $0.94 annualized dividend and a dividend yield of 12.5%. The ex-dividend date of this dividend is Wednesday, September 16th. Western Union's payout ratio is presently 76.42%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in WU. Wilmington Savings Fund Society FSB lifted its stake in Western Union by 606.7% in the third quarter. Wilmington Savings Fund Society FSB now owns 3,265 shares of the credit services provider's stock valued at $26,000 after buying an additional 2,803 shares during the last quarter. Ascentis Independent Advisors purchased a new position in shares of Western Union during the first quarter worth approximately $30,000. Salomon & Ludwin LLC grew its position in shares of Western Union by 1,546.5% during the fourth quarter. Salomon & Ludwin LLC now owns 3,326 shares of the credit services provider's stock worth $31,000 after acquiring an additional 3,124 shares during the last quarter. Fifth Third Bancorp increased its holdings in shares of Western Union by 67.0% in the 4th quarter. Fifth Third Bancorp now owns 3,331 shares of the credit services provider's stock valued at $31,000 after acquiring an additional 1,336 shares during the period. Finally, Caitong International Asset Management Co. Ltd increased its holdings in shares of Western Union by 179.6% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 3,341 shares of the credit services provider's stock valued at $31,000 after acquiring an additional 2,146 shares during the period. Hedge funds and other institutional investors own 91.81% of the company's stock.

More Western Union News

Here are the key news stories impacting Western Union this week:

• Positive Sentiment: Western Union and Intermex received approval from the New York State Department of Financial Services for the pending acquisition. Western Union agreed to maintain certain remittance services and locations in New York, marking meaningful progress toward closing the transaction. Western Union advances Intermex acquisition with New York approval
• Neutral Sentiment: Western Union’s planned Stablecard launch highlights its effort to expand beyond traditional money transfers into digital financial services, though investors will likely want evidence of customer adoption and financial benefits before assigning significant value. What Is Western Union Betting On With Its Stablecard Launch?
• Neutral Sentiment: Analysts at American Banking News reported a $7.55 target price for WU, close to the referenced $7.49 opening price, suggesting limited near-term upside in that estimate. Analysts Set The Western Union Company Target Price at $7.55
• Negative Sentiment: California’s Department of Financial Protection and Innovation suspended an earlier approval extension for the Intermex deal, citing the need for additional review of the transaction’s impact on California operations. The delay threatens the timing and certainty of the acquisition, although both companies plan to seek reinstatement promptly. Western Union and Intermex Provide Update on Pending Acquisition
• Negative Sentiment: Zacks Research cut EPS estimates across several future quarters, including Q1 2027 to $0.33 from $0.36, Q2 2027 to $0.36 from $0.44, and Q4 2027 to $0.46 from $0.58. Its continued “Strong Sell” rating reinforces concerns about Western Union’s earnings outlook.
• Negative Sentiment: William Blair maintained a “Hold” rating, citing regulatory uncertainty and weak Intermex fundamentals. Separate commentary has also questioned whether Western Union’s unusually high dividend yield is sustainable as competitors gain market share.

About Western Union

Western Union Company NYSE: WU is a global leader in cross-border, cross-currency money movement and payments. The company enables individuals and businesses to send and receive money through a variety of channels, including its vast agent network, online platforms, and mobile applications. Core services include person-to-person money transfers, business-to-business cross-border payments, bill payment services and prepaid card programs.

Through its digital offerings, Western Union provides customers with the ability to initiate transfers via its website and mobile app, as well as track transactions in real time.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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