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 ...

Western Union (WU) came out with quarterly earnings of $0.46 per share, beating the Zacks Consensus Estimate of $0.44 per share. This compares to earnings of $0.43 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.55%. A quarter ago, it was expected that this money transfer company would post earnings of $0.44 per share when it actually produced earnings of $0.44, delivering no surprise.Over the last four quarters, the company ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-32903 THE WESTERN UNION COMPANY (Exact name of registrant as specified in its charter) Delaware (State or Other Jurisdiction of Incorp ...

[Q3 2024 Financial and Business Highlights](index=1&type=section&id=Q3_2024_Financial_and_Business_Highlights) Western Union's Q3 2024 featured a GAAP revenue decrease, adjusted growth, significant EPS rise from an IRS settlement, and varied segment performance [Q3 Consolidated Financial Performance](index=1&type=section&id=Q3_Consolidated_Financial_Performance) Western Union reported a 6% GAAP revenue decrease to $1.04 billion in Q3 2024, primarily due to lower contribution from Iraq, while adjusted revenue, excluding Iraq, increased by 1% Revenue Performance | Metric | Q3 2024 (USD Billions) | Q3 2023 (USD Billions) | Reported % Change | Adjusted % Change (excl. Iraq) | | :----- | :--------------------- | :--------------------- | :---------------- | :----------------------------- | | Revenue | $1.04 | $1.10 | (6)% | 1% | EPS Performance | Metric | Q3 2024 (USD) | Q3 2023 (USD) | Reported % Change | | :----- | :------------ | :------------ | :---------------- | | GAAP EPS | $0.78 | $0.46 | 70% | | Adjusted EPS | $0.46 | $0.43 | 7% | - Revenue decline was negatively impacted by **7 percentage points** due to lower contribution from Iraq[1](index=1&type=chunk) - GAAP EPS in Q3 2024 included a **$0.40 benefit** from a settlement with the U.S. Internal Revenue Service regarding 2017 and 2018 federal income tax returns[2](index=2&type=chunk) [Q3 Business Segment Performance](index=1&type=section&id=Q3_Business_Segment_Performance) The Consumer Money Transfer (CMT) segment saw a reported revenue decrease of 9% (8% adjusted), despite a 3% transaction increase, mainly due to Iraq, while Branded Digital and Consumer Services showed strong growth Consumer Money Transfer (CMT) Segment Performance | Metric | Q3 2024 Reported % Change | Q3 2024 Adjusted % Change | Q3 2024 Transactions % Change | | :----- | :------------------------ | :------------------------ | :---------------------------- | | Revenue | (9)% | (8)% | 3% | Branded Digital Business Performance | Metric | Q3 2024 Reported % Change | Q3 2024 Adjusted % Change | Q3 2024 Transactions % Change | % of Total CMT Revenues | % of Total CMT Transactions | | :----- | :------------------------ | :------------------------ | :---------------------------- | :---------------------- | :-------------------------- | | Revenue | 8% | 9% | 15% | 25% | 32% | Consumer Services Segment Performance | Metric | Q3 2024 Reported % Change | Q3 2024 Adjusted % Change | | :----- | :------------------------ | :------------------------ | | Revenue | 32% | 15% | - Consumer Services growth benefited from new and expanded products led by the expansion of the Company's retail foreign exchange business and the addition of the Company's newly launched media network business, as well as the continued strength of the retail money order business[4](index=4&type=chunk) [Q3 Operating and Tax Metrics](index=2&type=section&id=Q3_Operating_and_Tax_Metrics) GAAP operating margin decreased to 15.9% from 19.2% YoY, impacted by redeployment program costs and Russia asset impairments, while adjusted operating margin slightly decreased to 19.1% Operating Margin | Metric | Q3 2024 | Q3 2023 | | :----- | :------ | :------ | | GAAP Operating Margin | 15.9% | 19.2% | | Adjusted Operating Margin | 19.1% | 19.6% | - GAAP operating margin in the current period included redeployment program costs and Russia asset impairments and termination costs[5](index=5&type=chunk) - Adjusted operating margins decreased due to a lower contribution from Iraq and strategic investments in new and expanded products in Consumer Services[5](index=5&type=chunk) Effective Tax Rate | Metric | Q3 2024 | Q3 2023 | | :----- | :------ | :------ | | GAAP Effective Tax Rate | (95.2)% benefit | 16.3% provision | | Adjusted Effective Tax Rate | 8.4% provision | 16.6% provision | - The decrease in the GAAP effective rate was primarily related to the IRS settlement[5](index=5&type=chunk) - The decrease in the adjusted effective tax rate was primarily due to discrete tax benefits[5](index=5&type=chunk) [CEO Commentary on Strategy and Performance](index=1&type=section&id=CEO_Commentary_on_Strategy_and_Performance) CEO Devin McGranahan expressed satisfaction with Q3 results, highlighting continued progress on the Evolve 2025 strategy and consistent transaction growth in Consumer Money Transfer - "We are pleased with third quarter results, which demonstrate continued progress of our Evolve 2025 strategy"[2](index=2&type=chunk) - "We've maintained **mid-single digit transaction growth** in our Consumer Money Transfer business for **five quarters in a row** and are now seeing the effect on revenue, with **positive adjusted consolidated revenue growth** for **two consecutive quarters**, excluding Iraq"[2](index=2&type=chunk) [2024 Financial Outlook](index=2&type=section&id=2024_Financial_Outlook) Western Union revised its GAAP outlook for operating margin and EPS due to specific costs and a tax settlement, while reiterating its adjusted full-year guidance [2024 Outlook Revision and Reiterated Guidance](index=2&type=section&id=2024_Outlook_Revision_and_Reiterated_Guidance) Western Union revised its GAAP operating margin and EPS outlook to account for redeployment program costs, Russia asset impairments, termination costs, and the IRS settlement, while reiterating its full-year 2024 adjusted outlook 2024 Outlook | Metric | GAAP Outlook | Adjusted Outlook | | :----- | :----------- | :--------------- | | Revenue | $4,125 to $4,200 million | $4,150 to $4,225 million | | Operating Margin | 17% to 19% | 19% to 21% | | EPS | $1.94 to $2.04 | $1.70 to $1.80 | - GAAP operating margin and EPS outlook revised to include the impact related to redeployment program costs, Russia asset impairments and termination costs, and the IRS settlement[6](index=6&type=chunk) - Full year 2024 adjusted outlook reiterated based on performance, assuming no material changes in macroeconomic conditions[6](index=6&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed_Consolidated_Financial_Statements) This section presents the company's condensed consolidated statements of income, balance sheets, and cash flows for Q3 and YTD 2024, highlighting key financial movements [Statements of Income](index=5&type=section&id=Statements_of_Income) For Q3 2024, revenues decreased by 6% YoY to $1,036.0 million, leading to a 22% decrease in operating income, but net income significantly increased by 55% to $264.8 million due to a tax benefit Q3 and YTD Income Statement Highlights | Metric (in millions, except per share) | Q3 2024 | Q3 2023 | % Change (Q3) | YTD 2024 | YTD 2023 | % Change (YTD) | | :------------------------------------- | :------ | :------ | :------------ | :------- | :------- | :------------- | | Revenues | $1,036.0 | $1,097.8 | (6)% | $3,151.5 | $3,304.7 | (5)% | | Operating income | $164.9 | $210.9 | (22)% | $547.7 | $658.2 | (17)% | | Income before income taxes | $135.7 | $204.3 | (34)% | $470.9 | $601.7 | (22)% | | Provision for/(benefit from) income taxes | $(129.1) | $33.3 | (b) | $(77.6) | $102.7 | (b) | | Net income | $264.8 | $171.0 | 55% | $548.5 | $499.0 | 10% | | Diluted EPS | $0.78 | $0.46 | 70% | $1.61 | $1.33 | 21% | [Balance Sheets](index=7&type=section&id=Balance_Sheets) As of September 30, 2024, total assets decreased to $7,675.8 million from $8,198.8 million at December 31, 2023, primarily due to decreases in cash and settlement assets, while total stockholders' equity increased Balance Sheet Highlights | Metric (in millions) | Sep 30, 2024 | Dec 31, 2023 | | :------------------- | :----------- | :----------- | | Cash and cash equivalents | $1,097.6 | $1,268.6 | | Settlement assets | $3,306.9 | $3,687.0 | | Total assets | $7,675.8 | $8,198.8 | | Total liabilities | $7,023.1 | $7,719.8 | | Total stockholders' equity | $652.7 | $479.0 | [Statements of Cash Flows](index=8&type=section&id=Statements_of_Cash_Flows) For the nine months ended September 30, 2024, net cash provided by operating activities decreased to $272.3 million, while net cash used in investing activities increased, and net cash used in financing activities decreased YTD Cash Flow Highlights | Metric (in millions) | YTD Sep 30, 2024 | YTD Sep 30, 2023 | | :------------------- | :--------------- | :--------------- | | Net income | $548.5 | $499.0 | | Net cash provided by operating activities | $272.3 | $518.6 | | Net cash used in investing activities | $(134.1) | $(76.5) | | Net cash used in financing activities | $(496.8) | $(835.0) | | Net change in cash and cash equivalents | $(358.6) | $(392.9) | [Segment Performance and Key Statistics](index=9&type=section&id=Segment_Performance_and_Key_Statistics) This section details the Q3 and YTD 2024 performance of Western Union's Consumer Money Transfer and Consumer Services segments, including key revenue, transaction, and operating margin trends [Summary Segment Data](index=9&type=section&id=Summary_Segment_Data) In Q3 2024, Consumer Money Transfer (CMT) revenue decreased 9% to $932.2 million, while Consumer Services (CS) revenue grew 32% to $103.8 million, with Business Solutions reporting no revenue due to divestiture Q3 and YTD Segment Revenues | Segment (in millions) | Q3 2024 Revenue | Q3 2023 Revenue | Q3 % Change | YTD 2024 Revenue | YTD 2023 Revenue | YTD % Change | | :-------------------- | :-------------- | :-------------- | :---------- | :--------------- | :--------------- | :----------- | | Consumer Money Transfer | $932.2 | $1,019.0 | (9)% | $2,859.2 | $3,029.5 | (6)% | | Consumer Services | $103.8 | $78.8 | 32% | $292.3 | $245.5 | 19% | | Business Solutions | — | — | (f) | — | $29.7 | (f) | | Total consolidated revenues | $1,036.0 | $1,097.8 | (6)% | $3,151.5 | $3,304.7 | (5)% | Q3 and YTD Segment Operating Income | Segment (in millions) | Q3 2024 Operating Income | Q3 2023 Operating Income | Q3 % Change | YTD 2024 Operating Income | YTD 2023 Operating Income | YTD % Change | | :-------------------- | :----------------------- | :----------------------- | :---------- | :------------------------ | :------------------------ | :----------- | | Consumer Money Transfer | $188.3 | $193.4 | (3)% | $567.4 | $601.9 | (6)% | | Consumer Services | $9.2 | $21.6 | (58)% | $38.9 | $72.1 | (46)% | | Business Solutions | — | — | (f) | — | $3.7 | (f) | | Total consolidated operating income | $164.9 | $210.9 | (22)% | $547.7 | $658.2 | (17)% | [Consolidated Key Metrics](index=10&type=section&id=Consolidated_Key_Metrics) Consolidated GAAP revenues showed a 6% YoY decrease in Q3 2024, while adjusted revenues (excluding Iraq) increased by 1%, with GAAP operating margin at 15.9% and adjusted operating margin at 19.1% Consolidated Revenue and Operating Margin Trends (YoY % Change) | Metric | 3Q23 | 4Q23 | FY2023 | 1Q24 | 2Q24 | 3Q24 | YTD 3Q24 | | :---------------------------------- | :--- | :--- | :----- | :--- | :--- | :--- | :------- | | Revenues (GAAP) | 1% | (4)% | (3)% | 1% | (9)% | (6)% | (5)% | | Adjusted revenues (non-GAAP) | 4% | (1)% | 1% | 3% | (7)% | (6)% | (4)% | | Adjusted revenues, excluding Iraq (non-GAAP) | (4)% | (4)% | (4)% | (1)% | 0% | 1% | 0% | | Operating margin (GAAP) | 19.2% | 15.1% | 18.8% | 18.3% | 17.9% | 15.9% | 17.4% | | Adjusted operating margin (non-GAAP) | 19.6% | 16.1% | 19.6% | 19.7% | 19.0% | 19.1% | 19.2% | [Consumer Money Transfer (CMT) Segment](index=10&type=section&id=Consumer_Money_Transfer_CMT_Segment) The CMT segment experienced a 9% GAAP revenue decrease (8% adjusted) in Q3 2024, primarily due to Iraq, despite a 3% increase in transactions, with cross-border principal remaining flat YoY CMT Revenue, Transactions, and Principal Trends (YoY % Change) | Metric | 3Q23 | 4Q23 | FY2023 | 1Q24 | 2Q24 | 3Q24 | YTD 3Q24 | | :---------------------------------- | :--- | :--- | :----- | :--- | :--- | :--- | :------- | | Revenues (GAAP) | 4% | (1)% | 0% | 3% | (10)% | (9)% | (6)% | | Adjusted revenues (non-GAAP) | 3% | (1)% | 0% | 3% | (9)% | (8)% | (5)% | | Transactions - YoY % change | 5% | 5% | 2% | 6% | 4% | 3% | 4% | | Cross-border principal, as reported - YoY % change | 13% | 8% | 9% | 7% | (6)% | 0% | 0% | | Operating margin | 19.0% | 15.3% | 18.7% | 19.5% | 19.8% | 20.2% | 19.8% | [Branded Digital Performance](index=10&type=section&id=Branded_Digital_Performance) Branded Digital revenues grew 8% (9% adjusted) in Q3 2024, with transactions increasing by 15% YoY, consistently showing positive growth throughout the year Branded Digital Revenue and Transaction Trends (YoY % Change) | Metric | 3Q23 | 4Q23 | FY2023 | 1Q24 | 2Q24 | 3Q24 | YTD 3Q24 | | :------------------------------------------ | :--- | :--- | :----- | :--- | :--- | :--- | :------- | | Branded Digital revenues (GAAP) | 3% | 4% | 0% | 9% | 5% | 8% | 7% | | Adjusted Branded Digital revenues (non-GAAP) | 3% | 4% | 0% | 9% | 7% | 9% | 8% | | Branded Digital transactions - YoY % change | 12% | 13% | 11% | 13% | 13% | 15% | 13% | [Regional CMT Performance](index=11&type=section&id=Regional_CMT_Performance) Regional performance within CMT varied in Q3 2024, with MEASA revenues significantly decreasing by 32% (GAAP) or 31% (Adjusted) due to Iraq, while other regions showed mixed results CMT Regional Revenue and Transaction Trends (Q3 2024 YoY % Change) | Region | GAAP Revenue % Change | Adjusted Revenue % Change | Transactions % Change | | :----- | :-------------------- | :------------------------ | :-------------------- | | NA | (3)% | (3)% | 3% | | EU & CIS | 0% | 1% | 6% | | MEASA | (32)% | (31)% | 0% | | LACA | (2)% | (1)% | (2)% | | APAC | (2)% | 1% | 11% | [Consumer Services (CS) Segment](index=12&type=section&id=Consumer_Services_CS_Segment) The Consumer Services segment demonstrated strong growth in Q3 2024, with GAAP revenues increasing 32% and adjusted revenues increasing 15% YoY, despite a significant decline in operating margin to 8.7% CS Revenue and Operating Margin Trends (YoY % Change) | Metric | 3Q23 | 4Q23 | FY2023 | 1Q24 | 2Q24 | 3Q24 | YTD 3Q24 | | :---------------------------------- | :--- | :--- | :----- | :--- | :--- | :--- | :------- | | Revenues (GAAP) | 22% | (1)% | 13% | 5% | 21% | 32% | 19% | | Adjusted revenues (non-GAAP) | 24% | 6% | 17% | 8% | 14% | 15% | 13% | | Operating margin | 27.5% | 26.6% | 28.7% | 21.3% | 11.0% | 8.7% | 13.3% | [Business Solutions Segment](index=9&type=section&id=Business_Solutions_Segment) The Business Solutions segment was fully divested by July 1, 2023, resulting in no reported revenues or operating income for Q3 or YTD 2024 - The Business Solutions segment was fully divested by **July 1, 2023**, with the final closing of European Union operations[18](index=18&type=chunk) - The divestiture resulted in a gain of **$18.0 million** in Q3 2023[31](index=31&type=chunk) - No revenues or operating income are reported for Business Solutions in 2024 periods[18](index=18&type=chunk) [Non-GAAP Measures and Notes](index=13&type=section&id=Non-GAAP_Measures_and_Notes) This section provides explanations and reconciliations of non-GAAP financial measures, detailing specific adjustments for a clearer understanding of underlying business performance [Explanation of Non-GAAP Measures](index=13&type=section&id=Explanation_of_Non-GAAP_Measures) Western Union presents non-GAAP financial measures to provide supplemental information that management believes is meaningful for understanding the company's financial results, offering comparability and consistency to prior periods, and eliminating currency volatility - Non-GAAP measures provide meaningful supplemental information to assist management, investors, and analysts in understanding financial results[8](index=8&type=chunk) - They offer comparability and consistency to prior periods or eliminate currency volatility, increasing the comparability of underlying results and trends[22](index=22&type=chunk) - A non-GAAP financial measure should not be considered in isolation or as a substitute for the most comparable GAAP financial measure[23](index=23&type=chunk) [Specific Adjustments and Definitions](index=13&type=section&id=Specific_Adjustments_and_Definitions) This section details the specific adjustments made to GAAP figures to arrive at non-GAAP measures, including constant currency, EBITDA, and impacts from acquisition/divestiture activities, redeployment programs, Russia asset impairments, and the IRS settlement Consolidated Metrics Reconciliation (Q3 2024) | Metric (in millions, except per share) | GAAP | Adjustments | Non-GAAP | | :------------------------------------- | :--- | :---------- | :------- | | Revenues | $1,036.0 | $(5.5) (FX/Argentina) | $1,030.5 | | Operating income | $164.9 | $32.6 (various) | $197.5 | | Net income | $264.8 | $(109.8) (various) | $155.0 | | Diluted EPS | $0.78 | $(0.32) (various) | $0.46 | | Effective tax rate | (95)% | 103% (IRS, other) | 8% | - **Constant Currency:** Excludes benefit or loss from foreign exchange fluctuations, net of hedges. Includes Argentina inflation impact where indicated[8](index=8&type=chunk) - **EBITDA:** Operating income adjusted for depreciation and amortization expenses, providing an additional performance measurement[24](index=24&type=chunk) - **Acquisition, Separation, and Integration Costs:** Expenses incurred for acquisition/divestiture activity, including review, closing, and integration costs, excluded from segment operating income[25](index=25&type=chunk) - **Business Solutions Divestiture:** Sale completed in three closings, final one on **July 1, 2023**, resulting in an **$18.0 million gain**. Revenues adjusted to exclude carved-out financial information for comparability[26](index=26&type=chunk)[31](index=31&type=chunk) - **Redeployment Program Costs:** Severance, organizational streamlining, vendor management, real estate, marketing, and people strategy optimizations, including non-cash impairments. Excluded from segment operating income[27](index=27&type=chunk) - **Russia Asset Impairments and Termination Costs:** In Q3 2024, **$12 million** in asset impairments and associated operating costs due to the decision to liquidate or sell Russian assets. Excluded from segment operating income[31](index=31&type=chunk) - **IRS Settlement:** In Q3 2024, a settlement with the U.S. IRS regarding 2017 and 2018 federal income tax returns. The non-cash reversal of the uncertain tax position liability is excluded due to its significance[32](index=32&type=chunk) - **Iraq Revenues:** Revenues from transactions originated in Iraq. Excluded from adjusted revenue measures due to significant volatility and challenges in offering services in the country, to provide better consistency and comparability[8](index=8&type=chunk)

Core Insights - Analysts project Western Union (WU) will announce quarterly earnings of $0.44 per share, reflecting a year-over-year increase of 2.3% [1] - Revenue is expected to reach $1.03 billion, indicating a decline of 5.9% from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, suggesting a reevaluation of initial estimates by analysts [1] Revenue Projections - The consensus estimate for 'Revenue- Consumer Services' is $83.16 million, showing a year-over-year increase of 5.5% [2] - 'Revenue- Consumer Money Transfer' is projected to be $950.41 million, reflecting a decrease of 6.7% from the previous year [2] - Analysts expect 'Consumer Money Transfer transactions- Total' to reach 70.97 million, slightly up from 70.6 million in the year-ago quarter [2] Stock Performance - Over the past month, Western Union shares have recorded a return of +2.2%, compared to the Zacks S&P 500 composite's +3.8% [3] - Based on its Zacks Rank 3 (Hold), Western Union is expected to perform in line with the overall market in the upcoming period [3]

Group 1 - Western Union faces significant challenges from new competitors and has struggled with declining revenues [1] - Despite revenue challenges, the company maintains strong cash flow and has a lasting customer base [1] Group 2 - The author emphasizes evaluating businesses as entities rather than mere stock tickers, indicating a long-term investment perspective [1]

The Western Union Company (WU) stock is currently trading at a notable discount relative to the Zacks Financial Transaction Services industry. With a forward 12-month price-to-earnings (P/E) ratio of 6.39X, it sits well below the industry average of 22.86X. The company has a Value Score of A. Image Source: Zacks Investment ResearchIn comparison, majorpayment companies such as Mastercard Incorporated (MA) and Visa Inc. (V) are way costlier at 30.59X and 24.63X, respectively.While a discount valuation often p ...

Core Viewpoint - Western Union is perceived as a declining business, which is reflected in its high dividend yield of 8% [1] Company Analysis - Western Union operates in the financial services sector and is currently facing challenges due to the rise of alternative payment methods [1] - The company’s stock performance is influenced by its ability to adapt to changing market conditions and consumer preferences [1] Investment Strategy - The investment approach focuses on long-term ownership rather than short-term price predictions, emphasizing valuations over target prices [1] - The analyst has shifted from issuing multiple sell recommendations to a simplified strategy of "Buy or Don't Buy," indicating a more cautious outlook on investments [1]

The Western Union Company (WU) inked a deal with the Open Finance company, Khipu, enabling customers to transfer money digitally using any bank account in Chile.The agreement incorporates Khipu's technology into Western Union's mobile app and website. Earlier, customers paying through a bank account had to leave the Western Union app or website and log into their bank's platform to complete the payment. This step is now removed as a result of the latest integration, allowing the entire transaction to be com ...