Western Union Q2 revenue and adjusted EPS miss estimates on Americas retail weakness
WU•Analyst coverage and valuation
The current average analyst rating on the shares is "sell," with no "strong buy" or "buy" ratings, 10 "hold" ratings, and 9 "sell" or "strong sell" ratings.
The average consensus recommendation for the business support services peer group is "buy."
Wall Street's median 12-month price target for Western Union Co is $8.50, about 5.1% above its July 29 closing price of $8.09.
The stock recently traded at 4 times the next 12-month earnings, versus a P/E of 5 three months ago.
Q2 revenue and adjusted EPS miss estimates
Western Union said second-quarter revenue fell 1% and missed analyst expectations, while adjusted earnings per share also declined and missed estimates.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Miss | $1 bln | $1.03 bln (14 Analysts) |
| Q2 Adjusted EPS | Miss | $0.31 | $0.42 (17 Analysts) |
| Q2 EPS | $0.24 |
Americas retail weakness and higher expenses pressured margins
The global money transfer firm said slower performance in the Americas retail business weighed on revenue and margins.
The company also cited higher expenses, especially in the Consumer Money Transfer retail business, as a factor in lower margins and EPS.
Revenue growth in Consumer Services and Branded Digital segments helped offset declines elsewhere.
