Core Molding Technologies-Western Union Q4 Earnings Miss Estimates on CMT Revenue Decline

Core Viewpoint - Western Union reported mixed fourth-quarter 2024 results, with adjusted EPS missing estimates but showing year-over-year improvement, while total revenues slightly increased and surpassed expectations [1][2]. Financial Performance - Adjusted EPS for Q4 2024 was 40 cents, missing the Zacks Consensus Estimate by 4.8%, but improved 8.1% year over year [1]. - Total revenues reached $1.1 billion, a 1% increase year over year, exceeding the Zacks Consensus Estimate by 3.1% [2]. - Adjusted operating margin improved by 100 basis points to 17%, driven by marketing and technology efficiencies [4]. - Total expenses decreased by 1% year over year to$ 880.1 million, although this was higher than the estimate of $822.5 million [4]. Segment Analysis - Consumer Money Transfer (CMT) segment revenues fell by 4% to$ 938.8 million but exceeded estimates [5]. - CMT operating income rose 14% year over year to $170 million, though it fell short of estimates [5]. - Consumer Services (CS) unit revenues surged 56% to$ 119.4 million, significantly surpassing estimates, driven by new business initiatives [7]. Cash Flow and Financial Position - Cash and cash equivalents stood at $1.5 billion, a 16.2% increase from the end of 2023 [9]. - Net cash from operations was$ 406.3 million, a decline of 48.1% from the previous year [10]. - Total stockholders' equity more than doubled to $968.9 million compared to the end of 2023 [9]. Capital Deployment - Western Union returned$ 318 million to shareholders through dividends and $177 million through share buybacks in 2024 [11]. 2025 Outlook - Management projects adjusted revenues between$ 4.115 billion and $4.215 billion, indicating a potential decline from 2024 [12]. - Adjusted EPS is expected to range from$ 1.75 to $1.85, suggesting a 3.4% improvement from 2024 [12]. - GAAP EPS is forecasted to decline by 42% from 2024 levels, with an expected range of$ 1.54 to $1.64 [12].