Earnings Outlook For Western Union

Western Union WU is preparing to release its quarterly earnings on Wednesday, 2024-10-23. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Western Union to report an earnings per share (EPS) of $0.44.

Investors in Western Union are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Overview of Past Earnings

The company's EPS missed by $0.01 in the last quarter, leading to a 8.33% drop in the share price on the following day.

Here's a look at Western Union's past performance and the resulting price change:

Stock Performance

Shares of Western Union were trading at $11.59 as of October 21. Over the last 52-week period, shares are down 10.36%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.

Analyst Insights on Western Union

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Western Union.

With 2 analyst ratings, Western Union has a consensus rating of Neutral. The average one-year price target is $13.0, indicating a potential 12.17% upside.

Peer Ratings Comparison

In this comparison, we explore the analyst ratings and average 1-year price targets of Euronet Worldwide, StoneCo and Payoneer Global, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Euronet Worldwide is maintaining an Buy status according to analysts, with an average 1-year price target of $123.0, indicating a potential 961.26% upside.
• As per analysts' assessments, StoneCo is favoring an Neutral trajectory, with an average 1-year price target of $13.0, suggesting a potential 12.17% upside.
• The consensus outlook from analysts is an Buy trajectory for Payoneer Global, with an average 1-year price target of $9.06, indicating a potential 21.83% downside.

Overview of Peer Analysis

The peer analysis summary outlines pivotal metrics for Euronet Worldwide, StoneCo and Payoneer Global, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Western Union is positioned in the middle among its peers for revenue growth. It ranks at the top for gross profit. In terms of return on equity, it is also positioned in the middle.

Delving into Western Union's Background

Western Union provides domestic and international money transfers through its global network of about 600,000 outside agents. The company handled over 270 million transactions in 2023 and is the largest money transfer company in the world.

Financial Milestones: Western Union's Journey

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Challenges: Western Union's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -8.85%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.

Net Margin: Western Union's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 13.22%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Western Union's ROE excels beyond industry benchmarks, reaching 33.62%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.76%, the company showcases effective utilization of assets.

Debt Management: With a high debt-to-equity ratio of 5.98, Western Union faces challenges in effectively managing its debt levels, indicating potential financial strain.

To track all earnings releases for Western Union visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.