While the top- and bottom-line numbers for Western Union (WU) give a sense of how the business performed in the quarter ended September 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Western Union (WU) came out with quarterly earnings of $0.46 per share, beating the Zacks Consensus Estimate of $0.44 per share. This compares to earnings of $0.43 per share a year ago.
Evaluate the expected performance of Western Union (WU) for the quarter ended September 2024, looking beyond the conventional Wall Street top-and-bottom-line estimates and examining some of its key metrics for better insight.
Western Union's core business, international money transfers, produces strong cash flow but has been shrinking as digital-only competitors take market share. New CEO Devin McGranahan is focused on cost-cutting and expanding the Branded Digital business, but margins continue to decline. I weigh the pros and cons of an investment in the business and lay out a price range that I would be comfortable buying in.
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WU's Consumer Services business is likely to play a significant role in revenue generation.
Western Union's 8% dividend yield is tempting, but the company is in decline, meriting a Hold rating for now. Management's "digital first" strategy aims to counteract declining revenues, but the business still heavily relies on traditional money transfer services. Financials show declining revenues and free cash flow, with capital allocated mainly to buybacks and dividends, reflecting limited reinvestment opportunities.
WU collaborates with Khipu to streamline digital bank transfers by Chile's customers, offering faster remittances and a seamless experience through its app and website.
Western Union (WU) concluded the recent trading session at $11.93, signifying a -1.89% move from its prior day's close.
In the closing of the recent trading day, Western Union (WU) stood at $12, denoting a +0.17% change from the preceding trading day.
Western Union (WU) closed at $11.87 in the latest trading session, marking a +0.94% move from the prior day.
Western Union (WU) reachead $11.78 at the closing of the latest trading day, reflecting a -1.01% change compared to its last close.