Financial Performance - Revenues for the three months ended March 31, 2025, were $983.6 million, a decrease of 6% compared to $1,049.1 million in the same period of 2024[147] - Operating income decreased by 8% to $177.4 million for the three months ended March 31, 2025, down from $192.1 million in 2024[147] - Net income for the three months ended March 31, 2025, was $123.5 million, reflecting a 13% decline from $142.7 million in the prior year[147] - Basic earnings per share decreased by 10% to $0.37 for the three months ended March 31, 2025, compared to $0.41 in 2024[157] - Total expenses for the three months ended March 31, 2025, were $806.2 million, a decrease of 6% from $857.0 million in the same period of 2024[147] - Adjusted revenues (Non-GAAP) decreased by 8% for the three months ended March 31, 2025, primarily due to foreign currency translation and Argentina inflation impacts[151] Segment Performance - Consumer Money Transfer segment accounted for 89% of total revenues in Q1 2025, down from 92% in Q1 2024[161] - Consumer Money Transfer segment revenues decreased by 9% to $872.9 million for the three months ended March 31, 2025, compared to $962.0 million in the same period of 2024[162] - Operating income for the Consumer Money Transfer segment fell by 15% to $159.3 million, with an operating income margin of 18%[162] - Total transactions in the Consumer Money Transfer segment increased by 3% to 70.8 million for the three months ended March 31, 2025[162] - Cross-border principal transferred by consumers rose to $25.8 billion in Q1 2025, up from $24.6 billion in Q1 2024[167] - Adjusted revenue growth for the Consumer Money Transfer segment, net of foreign currency impacts and Argentina inflation, showed a decline of 8%[166] - Consumer Services segment revenues increased by 27% to $110.7 million, with operating income rising by 46% to $27.1 million[173] Cash Flow and Capital Structure - Cash provided by operating activities increased to $148.2 million in Q1 2025, compared to $94.0 million in Q1 2024[187] - As of March 31, 2025, the company had cash and cash equivalents of $1,289.0 million, down from $1,474.0 million at the end of 2024[183] - The company had outstanding borrowings of $2,800.0 million as of March 31, 2025, primarily consisting of unsecured fixed-rate notes[188] - The Revolving Credit Facility was increased to $1.6 billion on February 28, 2025, maturing on November 30, 2029[190] - The company has a total committed balance of $1.6 billion under its Revolving Credit Facility, with no outstanding borrowings as of March 31, 2025[192] - As of March 31, 2025, the company had $350 million in outstanding commercial paper borrowings with a weighted-average annual interest rate of approximately 4.6%[194] - Capital expenditures for the three months ended March 31, 2025, were $24.4 million, compared to $35.1 million for the same period in 2024[197] - The company repurchased 7.0 million shares for $75 million during the three months ended March 31, 2025, at an average cost of $10.76 per share[198] Tax and Liabilities - The board declared quarterly cash dividends of $0.235 per common share, totaling $78.8 million in the first quarter of 2025[199] - The company has a 2017 United States federal tax liability of approximately $800 million, with a final installment of about $221 million due in the second quarter of 2025[202] - As of March 31, 2025, the company had approximately $65 million in outstanding letters of credit and bank guarantees[205] - The company’s total amount of unrecognized income tax benefits was $53.7 million as of March 31, 2025[206] Interest Rates and Sensitivity - The effective tax rate for the three months ended March 31, 2025, was 16.1%, slightly up from 16.0% in 2024[156] - The company’s weighted-average effective rate on total borrowings was approximately 4.5% as of March 31, 2025[218] - A hypothetical 100 basis point increase in interest rates would result in a decrease to pre-tax income of approximately $12 million based on sensitive borrowings[219] - Interest expense increased by 25% to $32.6 million for the three months ended March 31, 2025, compared to $26.1 million in 2024[147] Revenue Impact Factors - A reduction in transactions originating from Iraq negatively impacted revenues by 6% for the three months ended March 31, 2025[152]

Core Viewpoint - Analysts project that Western Union will report a quarterly earnings of $0.42 per share, reflecting a year-over-year decline of 6.7% and revenues of $1 billion, down 4.6% from the same quarter last year [1] Group 1: Earnings Projections - The consensus EPS estimate has been adjusted downward by 1.5% over the past 30 days, indicating a reassessment by covering analysts [1][2] - The importance of earnings projections is highlighted, as they significantly influence investor reactions and short-term stock price movements [2] Group 2: Revenue Estimates - Analysts estimate 'Revenue- Consumer Services' will reach $97.82 million, showing a year-over-year increase of 12.3% [4] - The 'Revenue- Consumer Money Transfer' is projected to be $898.87 million, indicating a decline of 6.6% from the prior-year quarter [4] - The total 'Consumer Money Transfer transactions' are expected to be 68.16 million, slightly down from 69 million a year ago [5] Group 3: Market Performance - Western Union shares have returned -8.9% over the past month, underperforming compared to the Zacks S&P 500 composite's -6.3% change [6] - The company holds a Zacks Rank 4 (Sell), suggesting it is expected to lag the overall market performance in the near future [6]

Core Viewpoint - The market anticipates a year-over-year decline in Western Union's earnings due to lower revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Western Union is expected to report quarterly earnings of $0.42 per share, reflecting a -6.7% change year-over-year, and revenues are projected to be $1 billion, down 4.6% from the previous year [3]. - The earnings report is scheduled for April 23, 2025, and could lead to stock price increases if results exceed expectations, while missing estimates may result in a decline [2]. Estimate Revisions - The consensus EPS estimate has been revised down by 1.48% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. - The Most Accurate Estimate for Western Union is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -9.40% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading is a strong predictor of an earnings beat, particularly when combined with a favorable Zacks Rank [8]. - Western Union currently holds a Zacks Rank of 4, making it challenging to predict an earnings beat conclusively [11]. Historical Performance - In the last reported quarter, Western Union was expected to post earnings of $0.42 per share but delivered only $0.40, resulting in a surprise of -4.76% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates twice [13]. Conclusion - Western Union does not appear to be a compelling candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [16].

Group 1 - Western Union (NYSE: WU) stock is currently trading at all-time lows, indicating a significant decline in its market value [1] - The article aims to provide a comprehensive history of the factors contributing to the stagnation of Western Union stock, particularly for new investors [1] - The author has a background in the tech industry and aims to identify GARP (Growth at a Reasonable Price) opportunities, suggesting a focus on value investing [1] Group 2 - The author has a beneficial long position in Western Union shares, indicating a personal investment interest in the company [2] - The article expresses the author's own opinions and is not influenced by external compensation, emphasizing an objective analysis [2] - There is no business relationship with any company mentioned in the article, reinforcing the independence of the analysis [2]

Group 1 - Western Union has launched a partnership with HCLTech focused on artificial intelligence to transition to a "platform operating model" for enhanced agility and scalability [1][2] - The collaboration will leverage HCLTech's digital, cloud, and AI solutions to improve platform and channel capabilities, aiming to deliver innovative customer experiences [2][3] - An advanced technology center will be established in Hyderabad, India, to strengthen Western Union's technological capabilities [2][3] Group 2 - Western Union's new media network business contributed to a 56% revenue growth in its Consumer Services unit during the fourth quarter [3] - The media network allows companies to advertise to Western Union customers, reaching a global audience and engaging consumers in a "commerce mindset" [3] - There is a noted apprehension among 91% of organizations using generative AI regarding its impact on sensitive company-wide data [4]

Core Insights - HCLTech and Western Union have formed a strategic partnership aimed at driving innovation and transformation in the financial services industry [1] - HCLTech is now Western Union's largest preferred partner, focusing on empowering fintech companies through digital engineering and innovative solutions [1] Company Overview - Western Union operates in over 200 countries and territories, providing cross-border, cross-currency money movement and digital financial services [2] - HCLTech employs over 220,000 people across 60 countries, with consolidated revenues of $13.8 billion for the 12 months ending December 2024 [3] Partnership Objectives - Transition to a platform operating model using HCLTech's AI-powered solutions to enhance agility and scalability for Western Union [4] - Accelerate platform and channel transformation by leveraging HCLTech's digital, cloud, and AI solutions to improve customer experiences [4] - Utilize HCLTech's expertise in digital engineering to reimagine Western Union's technology landscape and increase operational efficiency [4] - Establish an advanced technology center in Hyderabad, India, to enhance Western Union's global technology capabilities and foster innovation [4]

NEW YORK CITY, March 07, 2025 (GLOBE NEWSWIRE) -- Western Union has been recognized as the leading international money transfer service in Canada, according to Expert Consumers' annual review of financial services. As the global demand for secure and efficient cross-border transactions continues to rise, Western Union remains at the forefront, providing Canadians with a reliable solution for sending money abroad. Top Money Transfer Service Canada Western Union - top choice for secure, flexible, and accessi ...

NEW YORK CITY, March 07, 2025 (GLOBE NEWSWIRE) -- Expert Consumers has recognized Western Union as the top money transfer service for Canadians in 2025. The evaluation highlights Western Union’s reliability, global reach, and commitment to security, which are essential factors in an increasingly digital and interconnected financial landscape. Top Money Transfer Service Western Union: offers the best way to send money from Canada reliably, securely, and conveniently Western Union is a global financial servi ...

A month has gone by since the last earnings report for Western Union (WU) . Shares have lost about 2.9% in that time frame, outperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Western Union due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Western Union Q4 Earnings Miss Estimates on CMT Reve ...

Dividends and Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $0.235 per common share for 2024 and 2023, with future dividends dependent on financial conditions and cash generated by operating subsidiaries [198][199]. - Common stock dividends declared were $324.0 million in 2024, compared to $350.3 million in 2023, a decrease of 7.5% [370]. - The company repurchased 14.5 million shares in 2024, costing $186.0 million, compared to 24.9 million shares for $311.2 million in 2023 [370]. Financial Performance - Revenues for the year ended December 31, 2024, were $4,209.7 million, a decrease of 3.4% from $4,357.0 million in 2023 [355]. - Operating income for 2024 was $725.8 million, down 11.2% from $817.5 million in 2023 [355]. - Net income increased significantly to $934.2 million in 2024, compared to $626.0 million in 2023, reflecting a 49.1% increase [355]. - Basic earnings per share rose to $2.75 in 2024, up from $1.69 in 2023, marking a 62.7% increase [355]. - Total expenses for 2024 were $3,483.9 million, a decrease of 1.6% from $3,539.5 million in 2023 [355]. - Comprehensive income for 2024 was $961.0 million, an increase from $626.6 million in 2023 [359]. Assets and Liabilities - Total assets increased to $8,370.5 million in 2024, up from $8,198.8 million in 2023, representing a growth of 2.09% [362]. - Total liabilities decreased to $7,401.6 million in 2024 from $7,719.8 million in 2023, a reduction of 4.12% [362]. - Cash and cash equivalents at the end of 2024 were $2,106.9 million, up from $1,786.2 million in 2023, reflecting a growth of 17.9% [366]. - The company reported a net cash provided by operating activities of $406.3 million in 2024, down from $783.1 million in 2023, indicating a decline of 48.0% [365]. Taxation - The company reported a provision for income taxes of $(315.6) million in 2024, compared to $119.8 million in 2023, indicating a significant tax benefit [355]. - The effective tax rate for the year ended December 31, 2024, was -51.0%, significantly impacted by tax benefits from deferred tax assets and IRS settlements [492]. - Total deferred tax assets increased to $326.9 million in 2024 from $76.5 million in 2023, primarily due to a significant rise in intangibles, property, and equipment [496]. Foreign Currency and Interest Rate Risk - The company manages foreign currency exchange risk through short duration foreign currency forward contracts, with maturities ranging from a few days to one month [302][303]. - A hypothetical 10% strengthening or weakening of the U.S. dollar would have resulted in a decrease/increase to pre-tax annual income of approximately $18 million based on unhedged foreign currency exposure as of December 31, 2024 [304]. - The weighted-average effective rate on total borrowings was approximately 4.3% as of December 31, 2024 [308]. - A hypothetical 100 basis point increase in interest rates would result in a decrease to annual pre-tax income of approximately $8 million based on sensitive borrowings, while the same increase applied to floating rate cash and investments would result in an offsetting increase of approximately $15 million [309]. Business Operations and Segments - The Western Union Company operates in over 200 countries and territories, providing cross-border, cross-currency money movement and digital financial services [373]. - The Consumer Money Transfer segment facilitates money transfers primarily through retail agents and digital platforms, contributing significantly to the Company's revenue [378]. - The company completed the sale of its Business Solutions business on July 1, 2023, which may impact future revenue streams [374]. Shareholder Equity and Retained Earnings - The total stockholders' equity rose to $968.9 million in 2024, up from $479.0 million in 2023, reflecting an increase of 102.1% [370]. - Retained earnings improved to $35.2 million in 2024 from a deficit of $389.1 million in 2023, marking a significant turnaround [370]. Legal and Regulatory Matters - The company faced legal challenges in the DRC, with judgments totaling €19.5 million ($20.3 million as of December 31, 2024) against it [457][459]. - The reasonably possible potential litigation losses were approximately $30 million as of December 31, 2024, exceeding the recorded liability for probable and estimable losses [450]. Impairments and Intangible Assets - The Company recorded approximately $9 million of impairments related to other intangible assets during the year ended December 31, 2023 [407]. - Other intangible assets totaled $914.4 million as of December 31, 2024, with an estimated future aggregate amortization expense of $121.8 million in 2025 [405]. - Amortization expenses for other intangible assets were $141.7 million, $144.5 million, and $141.1 million for the years ended December 31, 2024, 2023, and 2022, respectively [401].