Overview
Western Union Q2 revenue falls 4% yr/yr, narrowly missing analyst expectations
Adjusted EPS for Q2 misses consensus, reflecting challenges in North America retail
Co's Branded Digital and Consumer Services segments show growth
Outlook
Western Union expects 2025 GAAP revenue of $4.085 bln to $4.185 bln
Company projects 2025 adjusted revenue of $4.035 bln to $4.135 bln
Western Union sees 2025 GAAP EPS of $1.45 to $1.55
Company anticipates 2025 adjusted EPS of $1.65 to $1.75
Result Drivers
NORTH AMERICA SLOWDOWN - Revenue decline attributed to slowdown in North America retail business
IRAQ REVENUE IMPACT - Lower revenue from Iraq contributed to overall decline
CONSUMER SERVICES GROWTH - Revenue growth driven by expansion of Travel Money business in Europe, including acquisition of Eurochange Limited
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$1.03 bln
$1.04 bln (13 Analysts)
Q2 Adjusted EPS
Miss
$0.42
$0.44 (16 Analysts)
Q2 EPS
$0.37
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 11 "hold" and 7 "sell" or "strong sell"
The average consensus recommendation for the business support services peer group is "buy."
Wall Street's median 12-month price target for Western Union Co is $10.25, about 16.3% above its July 25 closing price of $8.58
The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago
Press Release: ID:nBwcd8sZqa
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)