Western Union Q2 revenue and adjusted EPS miss estimates on Americas retail weakness
Western Union Q2 revenue and adjusted EPS miss estimates on Americas retail weakness
Overview
Global money transfer firm's Q2 revenue fell 1% and missed analyst expectations
Adjusted EPS for Q2 declined and missed analyst expectations
Company cites Americas retail weakness and delayed Intermex deal for margin pressure
Outlook
Western Union expects 2026 adjusted revenue growth of 4% to 6%
Company sees 2026 adjusted EPS of $1.25 to $1.35
Company plans to accelerate cost reductions in H2 2026 due to margin pressure
Result Drivers
AMERICAS RETAIL WEAKNESS - Co said slower performance in the Americas retail business weighed on revenue and margins
HIGHER OPERATING EXPENSES - Co cited higher expenses, especially in the Consumer Money Transfer retail business, as a factor in lower margins and EPS
CONSUMER SERVICES AND DIGITAL GROWTH - Revenue growth in Consumer Services and Branded Digital segments helped offset declines elsewhere
Company press release: ID:nBw6vrVgJa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $1 bln | $1.03 bln (14 Analysts) |
Q2 Adjusted EPS | Miss | $0.31 | $0.42 (17 Analysts) |
Q2 EPS |
| $0.24 |
|
Analyst Coverage
The current average analyst rating on the shares is "sell" and the breakdown of recommendations is no "strong buy" or "buy", 10 "hold" and 9 "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 $8.50, about 5.1% above its July 29 closing price of $8.09
The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 5 three months ago
Reuters Recommended Reads
July 30 - Euronet Worldwide misses Q2 revenue estimates, reiterates 2026 adjusted EPS outlook
July 30 - Money transfer firm Wise gains access to Malaysia's payments network
July 28 - PayPal presses on with turnaround in pivotal quarter as sale questions linger
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)
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