Western Union (NYSE:WU) Posts Earnings Results, Misses Expectations By $0.02 EPS

Western Union (NYSE:WU - Get Free Report) released its earnings results on Tuesday. The credit services provider reported $0.40 EPS for the quarter, missing analysts' consensus estimates of $0.42 by ($0.02), Zacks reports. Western Union had a return on equity of 96.90% and a net margin of 22.19%. Western Union updated its FY 2025 guidance to 1.750-1.850 EPS.

Western Union Trading Down 5.5 %

WU stock traded down $0.62 during trading on Friday, reaching $10.60. 8,265,573 shares of the stock were exchanged, compared to its average volume of 5,684,605. The business has a 50 day moving average price of $10.60 and a 200-day moving average price of $11.26. Western Union has a 1 year low of $10.04 and a 1 year high of $14.19. The company has a current ratio of 1.20, a quick ratio of 1.10 and a debt-to-equity ratio of 3.04. The firm has a market capitalization of $3.58 billion, a price-to-earnings ratio of 3.88, a P/E/G ratio of 1.54 and a beta of 0.85.

Western Union Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, March 31st. Shareholders of record on Monday, March 17th will be paid a $0.235 dividend. This represents a $0.94 dividend on an annualized basis and a dividend yield of 8.87%. The ex-dividend date is Monday, March 17th. Western Union's dividend payout ratio (DPR) is presently 34.43%.

Wall Street Analyst Weigh In

Several research firms have recently commented on WU. Susquehanna dropped their price objective on shares of Western Union from $13.00 to $12.00 and set a "neutral" rating on the stock in a report on Wednesday. StockNews.com raised shares of Western Union from a "sell" rating to a "hold" rating in a report on Friday, October 25th. Morgan Stanley reduced their price objective on Western Union from $10.00 to $9.00 and set an "underweight" rating for the company in a research note on Wednesday. UBS Group lowered their target price on Western Union from $13.50 to $12.00 and set a "neutral" rating on the stock in a research note on Thursday, October 24th. Finally, Keefe, Bruyette & Woods decreased their price target on Western Union from $13.00 to $12.00 and set a "market perform" rating for the company in a report on Monday, December 9th. Three equities research analysts have rated the stock with a sell rating and nine have assigned a hold rating to the company's stock. According to data from MarketBeat, Western Union has a consensus rating of "Hold" and an average price target of $12.11.

Western Union announced that its Board of Directors has initiated a share buyback plan on Friday, December 13th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the credit services provider to buy up to 27.5% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's management believes its stock is undervalued.

Western Union Company Profile

The Western Union Company provides money movement and payment services worldwide. The company operates through Consumer Money Transfer and Consumer Services segments. The Consumer Money Transfer segment facilitates money transfers for international cross-border and intra-country transfers, primarily through a network of retail agent locations, as well as through websites and mobile devices.