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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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