The Western Union Company WU reported first-quarter 2025 adjusted earnings per share (EPS) of 41 cents, which beat the Zacks Consensus Estimate by 2.5%. However, the bottom line declined 8.9% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Total revenues were $983.6 million, which fell 6% on a reported basis. Additionally, the top line missed the Zacks Consensus Estimate by 0.8%.

The better-than-expected first quarter earnings were supported by lower operating expenses, partly offset by Iraq’s low contribution and weakness in CMT segment’s performance despite rising transactions.

The Western Union Company Price, Consensus and EPS SurpriseThe Western Union Company Price, Consensus and EPS Surprise

The Western Union Company price-consensus-eps-surprise-chart | The Western Union Company Quote

Q1 Performance of WU

The adjusted operating margin decreased 100 basis points (bps) year over year to 19% due to a fall in contributions from Iraq. 
Total expenses dipped 6% year over year to $806.2 million but were higher than our estimate of $798.4 million. The year-over-year decline resulted from the lower cost of services and SG&A expenses.

Operating income of $177.4 million declined 8% year over year and lagged our estimate of $185.2 million.

Segment Analysis of WU

The CMT segment’s revenues fell 9% to $872.9 million. The metric missed the Zacks Consensus Estimate of $898.9 million.
Operating income was $159.3 million, which fell 15% year over year and also missed the consensus mark and our estimate of $180.56 million. The operating income margin decreased 100 bps year over year to 18%.

Transactions within the CMT segment grew 3% year over year, attributable to 14% transaction growth in the Branded Digital business. Branded Digital revenues, which accounted for 28% of CMT’s first-quarter revenues, improved 7% on a reported basis and 8% on an adjusted basis.

The CS unit recorded revenues of $110.7 million, which soared 27% on a reported basis but were down 3% on an adjusted basis. The metric outpaced the Zacks Consensus Estimate of $97.8 million and our estimate of $95.8 million.

However, operating income grew 46% year over year to $27.1 million, higher than the consensus mark and our estimate of $13.9 million. The operating income margin of 24% increased 300 bps year over year.

WU’s Financial Position (As of March 31, 2025)

Western Union exited the first quarter with cash and cash equivalents of $1.3 billion, which deteriorated from $1.5 billion at the end of 2024. Total assets of $8.3 billion decreased from $8.4 billion at 2024-end.

Borrowings were $2.8 billion, down from $2.9 billion as of Dec. 31, 2024.

Total stockholders' equity of $939.4 million declined from the 2024-end figure of $968.9 million.

WU generated net cash from operations of $148.2 million in the first quarter, which surged from the year-ago figure of $94 million.

Story Continues

Western Union’s Capital Deployment

Western Union rewarded its shareholders with $82.3 million in dividends and share buybacks worth $76.7 million in the first quarter of 2025.

WU’s 2025 View Reaffirmed

Management earlier anticipated adjusted revenues to be between $4.115 billion and $4.215 billion, the midpoint of which indicates a 0.8% decline from the 2024 figure of $4.198 billion.

Adjusted EPS is forecasted to be in the range of $1.75-$1.85, the midpoint of which indicates a 3.4% improvement from the 2024 reported figure of $1.74.

GAAP EPS is forecasted in the band of $1.54-$1.64, the midpoint of which implies a 42% decline from the 2024 figure of $2.74. 

The adjusted operating margin is expected to be between 19% and 21%. The metric was 19% in 2024.

WU’s Zacks Rank & Key Picks

WU currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader business services space are OppFi Inc. OPFI and PagSeguro Digital Ltd PAGS, each sporting a Zacks Rank #1 (Strong Buy). Another company, PAR Technology Corp PAR, currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for OppFi’s current-year earnings of $1.07 per share has witnessed two upward revisions in the past 60 days against no movement in the opposite direction. OppFi beat earnings estimates in each of the trailing four quarters, with the average surprise being 73%. The consensus estimate for current-year revenues is pegged at $576.9 million, implying 9.7% year-over-year growth.

The Zacks Consensus Estimate for PagSeguro’s current-year earnings of $1.25 per share has witnessed three upward revisions in the past 60 days against no movement in the opposite direction. PagSeguro beat earnings estimates in each of the trailing four quarters, with the average surprise being 9.3%. The consensus estimate for current-year revenues is pegged at $3.6 billion, implying 3.2% year-over-year growth.

The Zacks Consensus Estimate for PAR Technology’s current-year earnings of 16 cents per share has witnessed one upward revision in the past seven days against no movement in the opposite direction. PAR Technology’s consensus estimate for current-year revenues is pegged at $450.5 million, implying 16.9% year-over-year growth.

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The Western Union Company (WU):Free Stock Analysis Report

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