Western Union Q1 Earnings Beat Estimates on Lower Expenses

Core Viewpoint - Western Union reported first-quarter 2025 adjusted earnings per share (EPS) of 41 cents, exceeding the Zacks Consensus Estimate by 2.5%, but reflecting an 8.9% decline year over year. Total revenues were $983.6 million, down 6% year over year and missing the Zacks Consensus Estimate by 0.8% [1][2]. Financial Performance - Adjusted operating margin decreased by 100 basis points year over year to 19%, primarily due to reduced contributions from Iraq. Total expenses fell 6% year over year to $806.2 million, although this was higher than the estimated $798.4 million. Operating income was $177.4 million, down 8% year over year and below the estimate of $185.2 million [3]. - The CMT segment's revenues declined by 9% to $872.9 million, missing the Zacks Consensus Estimate of $898.9 million. Operating income for this segment fell 15% year over year to $159.3 million, also missing the consensus mark and the estimate of $180.56 million [4]. - Transactions within the CMT segment grew by 3% year over year, driven by a 14% increase in the Branded Digital business. Branded Digital revenues accounted for 28% of CMT's first-quarter revenues, improving by 7% on a reported basis [5]. Financial Position - As of March 31, 2025, Western Union had cash and cash equivalents of $1.3 billion, down from $1.5 billion at the end of 2024. Total assets decreased to $8.3 billion from $8.4 billion, while borrowings fell to $2.8 billion from $2.9 billion. Total stockholders' equity declined to $939.4 million from $968.9 million at the end of 2024 [7]. - The company generated net cash from operations of $148.2 million in the first quarter, significantly up from $94 million in the same period last year [8]. Capital Deployment - In the first quarter of 2025, Western Union returned $82.3 million to shareholders through dividends and $76.7 million through share buybacks [9]. 2025 Outlook - Management reaffirmed its 2025 guidance, expecting adjusted revenues between $4.115 billion and $4.215 billion, indicating a 0.8% decline from the 2024 figure of $4.198 billion. Adjusted EPS is forecasted to be in the range of $1.75-$1.85, suggesting a 3.4% improvement from the 2024 reported figure of $1.74 [11][12].