Q1 EPS Estimates for Western Union Cut by Zacks Research

The Western Union Company (NYSE:WU) – Zacks Research cut their Q1 2027 earnings per share estimates for shares of Western Union in a report issued on Thursday, August 13th. Zacks Research analyst Team now forecasts that the credit services provider will post earnings of $0.33 per share for the quarter, down from their previous forecast of $0.36. Zacks Research has a “Strong Sell” rating on the stock. The consensus estimate for Western Union’s current full-year earnings is $1.29 per share. Zacks Research also issued estimates for Western Union’s Q2 2027 earnings at $0.36 EPS, Q4 2027 earnings at $0.46 EPS, Q1 2028 earnings at $0.32 EPS and Q2 2028 earnings at $0.40 EPS.

Western Union (NYSE:WU) last posted its quarterly earnings data on Thursday, July 30th. The credit services provider reported $0.31 EPS for the quarter, missing the consensus estimate of $0.42 by ($0.11). Western Union had a net margin of 9.79% and a return on equity of 50.89%. The company had revenue of $1.01 billion for the quarter, compared to analysts’ expectations of $1.02 billion. During the same period in the prior year, the company earned $0.37 earnings per share. The firm’s revenue was down 1.3% on a year-over-year basis. Western Union has set its FY 2026 guidance at 1.250-1.350 EPS.

WU has been the subject of several other reports. Royal Bank Of Canada decreased their price target on Western Union from $9.00 to $8.00 and set a “sector perform” rating for the company in a report on Friday, July 31st. Morgan Stanley cut their price objective on shares of Western Union from $7.00 to $6.00 and set an “underweight” rating for the company in a research report on Friday, July 31st. Barclays reduced their target price on shares of Western Union from $7.00 to $6.00 and set an “underweight” rating for the company in a research note on Friday, July 31st. Wolfe Research reiterated an “underperform” rating and set a $8.00 price target on shares of Western Union in a research note on Friday, July 31st. Finally, Monness Crespi & Hardt reissued a “sell” rating and set a $6.00 price target on shares of Western Union in a report on Friday, July 31st. Six equities research analysts have rated the stock with a Hold rating and eight have assigned a Sell rating to the company. According to MarketBeat.com, Western Union currently has a consensus rating of “Strong Sell” and a consensus target price of $7.55.

Western Union Trading Up 5.0%

NYSE:WU opened at $7.49 on Friday. Western Union has a 12-month low of $6.27 and a 12-month high of $10.35. The company has a current ratio of 1.12, a quick ratio of 1.12 and a debt-to-equity ratio of 2.95. The stock’s 50 day simple moving average is $7.62 and its 200-day simple moving average is $8.60. The firm has a market cap of $2.34 billion, a P/E ratio of 6.09 and a beta of 0.47.

Institutional Trading of Western Union

Several institutional investors and hedge funds have recently modified their holdings of WU. Wilmington Savings Fund Society FSB raised its position in shares of Western Union by 606.7% during the 3rd quarter. Wilmington Savings Fund Society FSB now owns 3,265 shares of the credit services provider’s stock worth $26,000 after purchasing an additional 2,803 shares during the last quarter. Ascentis Independent Advisors purchased a new position in Western Union in the 1st quarter valued at about $30,000. Salomon & Ludwin LLC raised its position in shares of Western Union by 1,546.5% in the fourth quarter. Salomon & Ludwin LLC now owns 3,326 shares of the credit services provider’s stock valued at $31,000 after buying an additional 3,124 shares during the last quarter. Fifth Third Bancorp boosted its position in Western Union by 67.0% during the fourth quarter. Fifth Third Bancorp now owns 3,331 shares of the credit services provider’s stock worth $31,000 after acquiring an additional 1,336 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd lifted its stake in shares of Western Union by 179.6% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 3,341 shares of the credit services provider’s stock worth $31,000 after purchasing an additional 2,146 shares during the period. Hedge funds and other institutional investors own 91.81% of the company’s stock.

Western Union Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 16th will be paid a dividend of $0.235 per share. This represents a $0.94 annualized dividend and a dividend yield of 12.5%. The ex-dividend date of this dividend is Wednesday, September 16th. Western Union’s payout ratio is 76.42%.

Key Western Union News

Here are the key news stories impacting Western Union this week:

• Positive Sentiment: Western Union and Intermex received approval from the New York State Department of Financial Services for the pending acquisition. Western Union agreed to maintain certain remittance services and locations in New York, marking meaningful progress toward closing the transaction. Western Union advances Intermex acquisition with New York approval
• Neutral Sentiment: Western Union’s planned Stablecard launch highlights its effort to expand beyond traditional money transfers into digital financial services, though investors will likely want evidence of customer adoption and financial benefits before assigning significant value. What Is Western Union Betting On With Its Stablecard Launch?
• Neutral Sentiment: Analysts at American Banking News reported a $7.55 target price for WU, close to the referenced $7.49 opening price, suggesting limited near-term upside in that estimate. Analysts Set The Western Union Company Target Price at $7.55
• Negative Sentiment: California’s Department of Financial Protection and Innovation suspended an earlier approval extension for the Intermex deal, citing the need for additional review of the transaction’s impact on California operations. The delay threatens the timing and certainty of the acquisition, although both companies plan to seek reinstatement promptly. Western Union and Intermex Provide Update on Pending Acquisition
• Negative Sentiment: Zacks Research cut EPS estimates across several future quarters, including Q1 2027 to $0.33 from $0.36, Q2 2027 to $0.36 from $0.44, and Q4 2027 to $0.46 from $0.58. Its continued “Strong Sell” rating reinforces concerns about Western Union’s earnings outlook.
• Negative Sentiment: William Blair maintained a “Hold” rating, citing regulatory uncertainty and weak Intermex fundamentals. Separate commentary has also questioned whether Western Union’s unusually high dividend yield is sustainable as competitors gain market share.

About Western Union

Western Union Company (NYSE: WU) is a global leader in cross-border, cross-currency money movement and payments. The company enables individuals and businesses to send and receive money through a variety of channels, including its vast agent network, online platforms, and mobile applications. Core services include person-to-person money transfers, business-to-business cross-border payments, bill payment services and prepaid card programs.

Through its digital offerings, Western Union provides customers with the ability to initiate transfers via its website and mobile app, as well as track transactions in real time.