Financial Performance - Third quarter 2025 revenue was $1.03 billion, flat compared to the prior year, with adjusted revenue down 1% excluding Iraq[2] - GAAP EPS for Q3 was $0.43, down 45% from $0.78 in the prior year, while adjusted EPS increased to $0.47 from $0.46[3][4] - The Company expects full year 2025 GAAP revenue between $4,085 million and $4,185 million, and adjusted revenue between $4,035 million and $4,135 million[8] - Net income for Q3 was $139.6 million, a decrease of 47% from $264.8 million in the prior year[20] - Total consolidated revenues for the nine months ended September 30, 2025, decreased by 3% to $3,042.3 million compared to $3,151.5 million in the same period of 2024[26] - Consumer Money Transfer revenues declined by 8% year-over-year to $2,635.9 million for the nine months ended September 30, 2025, down from $2,859.2 million in 2024[26] - Net income for the nine months ended September 30, 2025, was $385.2 million, a decrease of 30% from $548.5 million in 2024[24] - Total revenues (GAAP) for FY2024 were $4,209.7 million, with a YoY decrease of 3%[40] - Revenues for Q3 2024 (GAAP) were $932.2 million, reflecting a year-over-year decline of 9%[48] Revenue Growth and Segments - Consumer Services revenue grew 49% on both a reported and adjusted basis, driven by the expansion of the Travel Money business and higher revenues from Argentina bill pay[9] - Branded Digital revenue increased by 7% on a reported basis and 6% on an adjusted basis, with transaction growth of 12% compared to the prior year[9] - The company reported a decrease in CMT segment revenue by 6% on a reported basis, with adjusted revenues and transactions declining 7% and 2%, respectively[9] - The company reported a 49% increase in Consumer Services revenues for the three months ended September 30, 2025, reaching $154.6 million compared to $103.8 million in 2024[26] - Consumer Services segment revenues increased by 32% YoY in Q3 2024 and 56% in Q4 2024, with adjusted revenues showing a 15% increase in Q3 2024[35] - The Consumer Money Transfer segment accounted for 90% of total company revenue in Q3 2024[35] Operating Metrics - Operating margin for Q3 was 20%, up from 16% in the previous year, benefiting from improved cost efficiencies[9] - Operating income for the total segments increased by 4% to $572.0 million for the nine months ended September 30, 2025, compared to $547.7 million in 2024[26] - The operating margin for the Consumer Services segment was reported at 9% in Q3 2024 and 11% in Q4 2024[35] - GAAP operating income for 3Q24 was $164.9 million, with an adjusted operating income of $197.5 million, reflecting an operating margin of 16% and an adjusted operating margin of 19%[42] Tax and Expenses - The GAAP effective tax rate was 17%, compared to a benefit of 95% in the prior year, primarily due to an IRS settlement[9] - Total expenses for Q3 decreased by 5% to $830.7 million, driven by a 14% reduction in selling, general, and administrative expenses[20] - The effective tax rate (GAAP) for 3Q24 was -95%, while the adjusted effective tax rate (non-GAAP) was 8%[46] Cash and Liabilities - Cash and cash equivalents at the end of the period were $1,375.4 million, a decrease from $1,427.6 million at the end of September 30, 2024[24] - Total liabilities decreased to $6,858.6 million as of September 30, 2025, from $7,401.6 million as of December 31, 2024[22] - The company’s total stockholders' equity decreased to $925.4 million as of September 30, 2025, from $968.9 million as of December 31, 2024[22] Regional Performance - North America region revenues decreased by 3% YoY in Q3 2024 and 5% in Q4 2024, with adjusted revenues showing a similar trend[33] - EU & CIS region revenues increased by 0% YoY in Q3 2024 and 3% in Q4 2024, with adjusted revenues showing a 1% increase in Q3 2024[33] - MEASA region revenues saw a significant decline of 32% YoY in Q3 2024 and 10% in Q4 2024, with adjusted revenues down 31% in Q3 2024[33] - APAC region revenues decreased by 2% YoY in Q3 2024 and 6% in Q4 2024, with adjusted revenues showing a 1% increase in Q3 2024[33] Future Projections - The company anticipates continued growth in adjusted operating income, with projections of $206.2 million for 3Q25[42] - The company projects FY 2025 revenues (GAAP) in the range of $4,085 million to $4,185 million[50] - Adjusted revenues (non-GAAP) for FY 2025 are expected to be between $4,035 million and $4,135 million[50] - Operating margin (GAAP) for FY 2025 is forecasted to be between 18% and 20%[50] - Earnings per share (GAAP) for FY 2025 is projected to be between $1.45 and $1.55[50] - The effective tax rate (GAAP) for FY 2025 is estimated to be between 19% and 21%[50] Operational Changes and Challenges - The company will no longer adjust for the estimated impact of Argentinian hyperinflation starting Q2 2025, as inflation has moderated[36] - The Company experienced a significant increase in business originating from Iraq starting March 2023, attributed to policy changes by U.S. and Iraqi regulators[54] - In July 2023, the U.S. Treasury and the Federal Reserve Bank of New York banned 14 Iraqi banks from conducting U.S. dollar transactions, impacting the Company's operations[54] - The Central Bank of Iraq suspended the Company's largest agent in October 2023, although the agent was later reinstated[54] - Management believes that revenue measures excluding Iraq revenues provide better consistency and comparability to prior periods[54] - The Company reorganized its international operations in Q4 2024, recognizing deferred tax assets associated with this reorganization[54] - The non-cash recognition of deferred tax assets has been excluded from reported results due to its significance[54] - The Company excludes transactions and revenues generated from Iraq websites and mobile applications from the definition of Branded Digital due to significant volatility[54] - The North America region represents the Company's Consumer Money Transfer segment, which includes the United States and Canada[54] - The Middle East, Africa, and South Asia region includes India and certain South Asian countries, contributing to the Company's Consumer Money Transfer segment[54] - The Company focuses on factors it believes are most relevant to operations by excluding severance costs from its measurement of non-GAAP profitability[54]

Core Viewpoint - Western Union is expected to report a decline in quarterly earnings and revenues, indicating potential challenges in its financial performance [1]. Financial Performance Estimates - Analysts predict quarterly earnings of $0.43 per share, a decrease of 6.5% year-over-year [1]. - Revenue is forecasted at $1.02 billion, reflecting a year-over-year decrease of 1.4% [1]. - The consensus EPS estimate has remained unchanged over the past 30 days, indicating a stable outlook among analysts [2]. Key Metrics Analysis - Estimated 'Revenue- Consumer Services' is projected at $127.65 million, showing a significant increase of 23% from the previous year [5]. - 'Revenue- Consumer Money Transfer' is expected to be $890.79 million, which represents a decline of 4.4% compared to the prior-year quarter [5]. - Total 'Consumer Money Transfer transactions' are estimated to be 71.50 million, down from 72.60 million a year ago [6]. Market Performance - Over the past month, Western Union shares have increased by 1.8%, outperforming the Zacks S&P 500 composite, which rose by 1.1% [6]. - The company holds a Zacks Rank of 4 (Sell), suggesting it may underperform the overall market in the near future [6].

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Company Ratings and Analyst Insights - PennyMac Mortgage Investment Trust (NYSE:PMT) has a dividend yield of 13.50%. Analyst Bose George from Keefe, Bruyette & Woods downgraded the stock from Outperform to Market Perform, reducing the price target from $14.5 to $13.5 [7] - KKR Real Estate Finance Trust Inc (NYSE:KREF) has a dividend yield of 11.64%. JP Morgan analyst Richard Shane maintained an Overweight rating but decreased the price target from $11.5 to $9.5 [7] - Western Union Co (NYSE:WU) has a dividend yield of 11.55%. Keefe, Bruyette & Woods analyst Sanjay Sakhrani maintained a Market Perform rating and cut the price target from $10 to $9 [7] Group 2: Recent Company News - PennyMac Mortgage Investment Trust announced that Kevin Ryan will join as senior managing director and chief strategy officer [7] - KKR Real Estate Finance Trust is set to release its financial results for the third quarter on October 21 [7] - Western Union will announce its third quarter results on October 23 [7]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: PennyMac Mortgage Investment Trust (PMT) - PMT has a dividend yield of 13.50% [7] - Analyst Bose George from Keefe, Bruyette & Woods downgraded PMT from Outperform to Market Perform, reducing the price target from $14.5 to $13.5 [7] - Analyst Mike Kaye from Wells Fargo maintained an Equal-Weight rating and cut the price target from $14 to $13 [7] - Recent news includes the appointment of Kevin Ryan as senior managing director and chief strategy officer [7] Group 2: KKR Real Estate Finance Trust Inc (KREF) - KREF has a dividend yield of 11.64% [7] - Analyst Richard Shane from JP Morgan maintained an Overweight rating and decreased the price target from $11.5 to $9.5 [7] - Analyst Jade Rahmani from Keefe, Bruyette & Woods maintained an Outperform rating and cut the price target from $13 to $12.25 [7] - KREF is set to release its financial results for Q3 on October 21 [7] Group 3: Western Union Co (WU) - WU has a dividend yield of 11.55% [7] - Analyst Sanjay Sakhrani from Keefe, Bruyette & Woods maintained a Market Perform rating and cut the price target from $10 to $9 [7] - Analyst Ramsey El-Assal from Barclays maintained an Underweight rating and slashed the price target from $10 to $8 [7] - WU will release its third-quarter results on October 23 [7]

Core Viewpoint - The expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act is a significant regulatory milestone for Western Union's planned acquisition of Intermex, which is expected to close in mid-2026, pending other regulatory approvals and stockholder consent [1][2]. Company Overview Western Union - Western Union is a global leader in cross-border, cross-currency money movement and digital financial services, operating in over 200 countries and territories with more than 130 currencies [3]. - The company aims to provide accessible financial services to help individuals and communities prosper [3]. Intermex - Intermex, founded in 1994, utilizes proprietary technology to facilitate money transfers from the U.S., Canada, Spain, Italy, the U.K., and Germany to over 60 countries [4]. - The company operates through a network of agent retailers, company-operated stores, mobile apps, and websites, fulfilling transactions via thousands of retail and bank locations globally [4].

Western Union (WU) ended the recent trading session at $8.08, demonstrating a +1.13% change from the preceding day's closing price. This change outpaced the S&P 500's 0.34% gain on the day. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq increased by 0.42%. Prior to today's trading, shares of the money transfer company had lost 8.69% lagged the Business Services sector's gain of 0.7% and the S&P 500's gain of 3.54%.The investment community will be paying close attent ...

Group 1 - The Western Union Company has experienced a 75% decline in share price over the past five and a half years, primarily due to competitive pressures affecting its business [2] - The company operates in the cross-border money transfer sector, which has seen increased competition impacting its market position [2] Group 2 - The Insiders Forum focuses on small and mid-cap stocks with significant insider purchases, aiming to outperform the Russell 2000 benchmark [2]

Group 1 - The Western Union Company has experienced a 75% decline in its share price over the past five and a half years, primarily due to competitive pressures affecting its business [2] - The company operates in the cross-border money transfer sector, which has seen increased competition impacting its market position [2] - The Insiders Forum focuses on small and mid-cap stocks with significant insider purchases, aiming to outperform the Russell 2000 benchmark [2]

Company Overview - The Western Union Company (NYSE: WU) provides global money transfer and payment solutions through various channels including retail agents, digital platforms, and mobile services [1] - The company offers a range of services such as bill payments, money orders, prepaid cards, foreign exchange, and digital wallet services [1] Recent Developments - On September 9, Western Union formed a partnership with dLocal (NASDAQ: DLO) to enhance digital payment options for money transfers in Latin America [1] - This partnership allows customers to utilize local payment methods like bank transfers and cards on Western Union's online platforms, resulting in increased choice, faster transfers, and lower costs [1] - The deal aligns with the region's growing shift towards digital services, following record remittance levels of $161 billion in 2024 [1] Market Sentiment - Jim Cramer expressed a negative outlook on Western Union, highlighting the lack of growth despite its high yield, indicating a preference for investments that offer growth and compounded income [1]

Company Insights - Western Union announced the acquisition of Intermex for approximately $500 million, aimed at strengthening its position in the high-growth Latin American markets [1] - Johnson Controls raised its dividend from 37 cents to 40 cents per share on September 10 [2] - MNTN reported a second-quarter loss of 65 cents per share, an improvement from a loss of 69 cents per share a year ago, with quarterly sales of $68.460 million, exceeding analyst estimates of $64.483 million [2] - Nordic American Tankers posted weaker-than-expected quarterly sales on August 28, leading to a negative outlook from analysts [3] - Occidental Petroleum maintained a Neutral rating from UBS, with a price target increase from $45 to $46 [3][4] - Kenvue received a Neutral rating from Citigroup, with a price target reduction from $22 to $20 [4] Stock Performance - Western Union shares fell 1.7% to settle at $8.20 [7] - Johnson Controls shares gained 1% to close at $108.48 [7] - MNTN shares rose 0.1% to settle at $20.08 [7] - Nordic American shares fell 0.3% to $3.30 [7] - Occidental Petroleum shares rose 0.4% to close at $47.36 [7] - Kenvue shares fell 1.3% to settle at $18.10 [7]