- Western Union has increased its full-year earnings per share (EPS) forecast to a range of $1.94 to $2.04 from their previous estimate of $1.62 to $1.72.
- The company adjusted its expected operating margin to a range of 17% to 19%, initially forecasting 18% to 20%.
- Adjusted EPS is still expected to be between $1.70 to $1.80, with the estimate at $1.76.
- Adjusted operating margin projections remain at 19% to 21%.
- For the third quarter, EPS was reported at 78 cents, surpassing the estimate of 44 cents.
- Third-quarter revenue reached $1.04 billion, slightly above the estimate of $1.03 billion.
- Consumer money transfer revenue was $932.2 million, below the estimate of $943.6 million.
- Consumer services revenue exceeded expectations with $103.8 million, against an estimate of $86.6 million.
- Adjusted EPS for the third quarter was 46 cents, compared to an estimate of 44 cents.
- Net income stood at $264.8 million, greatly surpassing the estimate of $144.8 million.
- The company has reiterated its full year 2024 adjusted outlook based on current performance.
- Analysts’ recommendations include 2 buys, 12 holds, and 7 sells.
Western Union Co on Smartkarma
On Smartkarma, investment analyst Baptista Research has initiated coverage on Western Union Co, providing a comprehensive overview of its core strategy and competitive advantage. The research report, “The Western Union Company: Initiation Of Coverage – A Deep Insight Into Its Core Strategy & Its Competitive Advantage! – Major Drivers,” delved into the company’s second-quarter 2024 financial results, highlighting its commitment to the Evolve 2025 strategy. Led by CEO Devin McGranahan and CFO Matt Cagwin, the earnings presentation outlined key financial metrics and strategic initiatives, identifying strengths and areas of concern. Baptista Research aims to assess the various factors influencing Western Union Co‘s price in the near future and conduct an independent valuation using a Discounted Cash Flow (DCF) methodology.
A look at Western Union Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores for Western Union Co, the company’s long-term outlook appears promising. With a top score of 5 in Dividend, investors can expect a strong dividend payout from the company. Additionally, a score of 3 in Growth indicates potential for expansion and development. Although Value and Resilience scores are moderate at 2, the company’s consistent momentum, with a score of 3, suggests ongoing positive performance.
The Western Union Company, known for its global money transfer services, has a solid foundation for growth and income generation. Offering consumer to consumer money transfer services and bill payment options, the company also sells money orders. With a high Dividend score of 5 and a respectable Growth score of 3, Western Union Co is positioned well for the future, despite moderate scores in Value and Resilience. Its consistent Momentum score of 3 reflects ongoing positive performance in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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