In a bid to boost shareholder value, The Western Union Company’s (WU) board of directors unveiled a buyback program of $1 billion. The program comes without a predetermined expiration date and may be paused, adjusted or terminated at any time without prior notice.Currently, WU has a $1-billion share repurchase program in place that was approved in February 2022 and is set to run through Dec. 31, 2024. During the nine months ended Sept. 30, 2024, the company bought back shares worth $177.3 million as part of ...

The Western Union Company (WU) recently opened eight new branded stores in Mexico, making it the first international money transfer company to do so in the country. These owned locations are designed to provide a more direct, high-quality customer experience for individuals sending and receiving money.The locations offer a range of services, including cross-border money transfers to over 200 countries and the ability to send funds to bank accounts, mobile wallets or cash collection. The stores further expan ...

Western Union has launched a media network business that lets companies advertise to its customers via company-owned channels like its website, mobile app and digital-out-of-home (DOOH) screen network as well as through audience extension.These channels enable companies to reach a diverse, multicultural and global audience, the provider of cross-border, cross-currency money movement, payments and digital financial services said in a Monday (Nov. 11) press release.“Our intimate knowledge and long-tenured rel ...

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium includes access to the Zacks Style Scores as we ...

Investors were clearly unimpressed by the company's third-quarter performance.A fresh quarterly earnings report was the news that affected Western Union's (WU -3.38%) share price on Thursday. Unfortunately, that effect was negative, as investors traded out of the stock to leave it with a more than 3% loss in price. This was on a day when the bellwether S&P 500 index grew, albeit marginally, at a 0.2% pace.Two beats in the third quarterWestern Union's third quarter results actually crossed the wires after ma ...

The Western Union Company (WU) reported third-quarter 2024 adjusted earnings per share (EPS) of 46 cents, which surpassed the Zacks Consensus Estimate by 4.6%. The bottom line advanced 7% year over year.However, total revenues declined 6% on a reported basis to $1.04 billion due to a fall in contributions from Iraq, partly offset by a well-performing Branded Digital business. Additionally, the top line beat the Zacks Consensus Estimate by 0.4%.The quarterly results benefited from strong transaction growth i ...

Western Union plans to acquire Dash, a mobile wallet in Singapore that has more than 1.4 million users.The company and Dash owner Singtel signed a conditional agreement on the sale of the mobile wallet, the companies said in a Wednesday (Oct. 23) press release. The sale is subject to regulatory approvals.The planned acquisition aligns with Western Union’s Evolve 2025 strategy to expand its financial ecosystem and double its digital business, according to the release.“Our business in Singapore is a unique bl ...

Western Union’s Branded Digital business saw 15% growth in transactions and 9% growth in revenue on a reported basis in the third quarter.This marked the sixth consecutive quarter of double-digit transaction growth for the Branded Digital business, the company said in a presentation released Wednesday (Oct. 23) in conjunction with its quarterly earnings call.The Branded Digital business now accounts for 32% of Western Union’s Consumer Money Transfer (CMT) transactions and 25% of its revenues, according to a ...

Financial Data and Key Metrics - Revenue for Q3 2024 reached $1.040 billion, with adjusted revenue growth of 1% excluding Iraq, marking the second consecutive quarter of positive revenue growth [7][22] - Adjusted EPS was $0.46, up $0.03 compared to the same quarter last year, driven by higher revenues and operating profits from Iraq in the previous year [7][22] - Adjusted operating margins were 19.1%, slightly down from 19.6% last year, primarily due to elevated Iraq revenue in the prior year and strategic investments in Consumer Services [23] - Year-to-date adjusted operating margin was 19.2%, with adjusted EPS at $0.46 versus $0.43 last year, benefiting from higher adjusted revenue, lower share count, and a lower adjusted effective tax rate [24] Business Line Performance - Consumer Money Transfer (CMT) transactions grew 4% excluding Iraq, driven by the strength of the branded digital business and digital white label business [25] - Branded digital business accelerated with transaction growth of 15% and revenue growth of 9%, approaching double-digit growth aspirations [6][25] - Consumer Services segment saw 15% adjusted revenue growth, driven by expansion in FX business and Media Network business [6][17] - Retail business improved with debit card acceptance in Europe, showing transaction growth rates hundreds of basis points faster than cash-only agents [13][14] Market Performance - Latin America faced challenges due to geopolitical volatility, impacting intra-LACA migration and slowing transaction growth, particularly in the U.S. to Mexico corridor [8][54] - Europe, Middle East, and APAC regions improved, with revenue growth rates increasing by 500 to 1,000 basis points compared to Q2 [9][25] - Australia's branded digital performance was strong, reaching 25% revenue growth in Q3, driven by the new digital solution deployed in late 2022 [26] Company Strategy and Industry Competition - The company is executing its Evolve 2025 strategy, focusing on improving value proposition, expanding product offerings, and ensuring high-quality execution [4][5] - Two M&A transactions were signed, including the acquisition of Singaporean digital wallet business Dash and a digital wallet in Mexico, aimed at accelerating the company's mission to provide accessible financial solutions [18][20] - The company is investing in digital transformation, including improving the onboarding experience, marketing effectiveness, and user experience, which has translated into more customers, transactions, and revenue [10][11] Management Commentary on Operating Environment and Future Outlook - Management remains optimistic about the company's market position and progress in delivering strategic initiatives, with improving transaction trends across digital and retail businesses [21] - The company reaffirmed its 2024 adjusted outlook, expecting adjusted revenue in the range of $4.15 billion to $4.225 billion and adjusted EPS in the range of $1.70 to $1.80 [32] - The company is ahead of its original plan for the Evolve 2025 strategy, with better momentum in the retail business outside the U.S. and acceleration in Consumer Services [41][42] Other Important Information - The company entered into a settlement with the IRS, resolving one of two open disputes related to 2017 and 2018 tax returns, resulting in a $140 million noncash tax benefit and a $90 million cash payment [24] - Year-to-date, the company has returned $460 million to stockholders through dividends and share repurchases, maintaining a strong balance sheet with cash and cash equivalents of over $1 billion and debt of $2.6 billion [31] Q&A Session Summary Question: Impact of Latin America elections on Q4 guidance and U.S. election implications - The impact of Latin America elections is still fluid, but the company feels confident in its guidance for Q4 [34] - The U.S. election is not expected to have a dramatic effect on the business in the near to intermediate term, as the majority of clients are already in the U.S. and gainfully employed [35] Question: Spread between branded digital transactions and revenue growth - The spread between branded digital transactions and revenue growth widened due to the growth in payout to account transactions, which typically come at a lower revenue per transaction but are stickier customers [37] - The company targets a long-term spread of 200 to 300 basis points and is happy to keep it wide as it accelerates both revenue and transactions [38] Question: Progress towards Evolve 2025 targets and opportunities for further investment - The company is six months ahead of its original plan for the Evolve 2025 strategy, with better momentum in the retail business outside the U.S. and acceleration in Consumer Services [41] - The company is working on guidance for 2025 and plans to provide an outlook beyond 2025 in the second half of next year [44][45] Question: M&A strategy and vision for digital wallets in Singapore and Mexico - The company is focused on thoughtful and prudent deployments of capital to accelerate its strategy, with acquisitions providing access to licenses, technology, and local talent [47][48] - The acquisitions of digital wallets in Singapore and Mexico are expected to accelerate the company's ecosystem strategy and build on its momentum in key markets [18][20] Question: Retail business stability and growth drivers - The company is focused on improving operational excellence, agent network support, and customer experience at the point of sale to stabilize or grow the retail business [52] - Controlled distribution, including Western Union branded exclusive independent agents and own stores, is a key part of the strategy to achieve stable retail business [53] Question: Performance in North America, particularly U.S. to Mexico corridor - The slowdown in the U.S. to Latin America corridor, particularly Mexico, is largely macro in nature, with similar trends observed by competitors [54] - The slowdown in migration patterns in Latin America is impacting transaction growth rates, particularly in regions with high one-time customers [56] Question: Competitive environment and impact of competitor outages - The company saw some upticks in transaction volumes in markets where it competes directly with MoneyGram, but the outage did not fundamentally change the competitive environment [58] - The company remains vigilant in maintaining high-quality security and safety for its customers [58] Question: Debit card acceptance rollout and margin profile - The company is rolling out debit card acceptance in Europe and the U.S., with positive results in Europe showing higher principal per transaction and lower costs compared to cash-only transactions [69][72] - The company is monitoring the uplift in principal per transaction and transactions per location in the U.S. to determine if pricing adjustments are needed [73] Question: Expectations for Iraq in Q4 and revenue trends - The company expects Iraq revenue to be at the lower end of the $10 million to $30 million range in Q4, with volatility expected to continue [77] - The company is cautious about narrowing its public guidance due to the uncertainty in Iraq's revenue contribution [77] Question: Owned store strategy and expansion plans - The company is disciplined in selecting locations for owned stores to ensure sufficient revenue to cover fixed expenses and achieve critical mass in key markets [79] - The company is expanding its owned store network in Europe and Asia, with plans to add more locations in select countries [80] Question: Adjusted operating margins and guidance - The company has maintained a wide range for adjusted operating margins (19% to 21%) and does not expect to be at the upper end of the range, focusing instead on delivering revenue and EPS growth [83]

Western Union (WU) reported $1.04 billion in revenue for the quarter ended September 2024, representing a year-over-year decline of 5.6%. EPS of $0.46 for the same period compares to $0.43 a year ago.The reported revenue represents a surprise of +0.42% over the Zacks Consensus Estimate of $1.03 billion. With the consensus EPS estimate being $0.44, the EPS surprise was +4.55%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine ...