Western Union Co (NYSE:WU) shares are plunging on Friday. The company reported mixed quarterly results and issued FY26 guidance.
Earnings Beat, But Revenue Misses
Western Union posted fourth‑quarter earnings of 45 cents per share, topping analyst estimates of 43 cents and improving 12.5% from 40 cents a year ago. However, revenue came in at $1.008 billion, missing the $1.045 billion consensus and falling 4.73% year‑over‑year.
The company is projecting GAAP sales of $4.254 billion to $4.375 billion and adjusted sales of $4.237 billion to $4.357 billion — above the $4.120 billion consensus estimate. However, adjusted EPS guidance of $1.75 to $1.85 is largely in line to modestly above expectations and GAAP EPS guidance came in below the Street's forecast.
Full‑year revenue also declined, down 4% on a reported basis and 2% on an adjusted basis excluding Iraq.
Segment Performance Shows Mixed Momentum
Despite strength in some areas — including 15% reported growth in Consumer Services and 7% growth in Branded Digital — the declines in core Consumer Money Transfer (CMT) weighed heavily. CMT revenue dropped 7% in quarter-four and adjusted revenue fell 9%.
For the full year, Western Union generated $4.1 billion in revenue, down 4% on a reported basis. Adjusted EPS held steady at $1.75.
The company returned $529 million to shareholders through dividends and buybacks and reported $544 million in operating cash flow.
What Analysts Have To Say
Western Union has recently been the subject of mixed rating actions from analysts. On Jan. 27, Cantor Fitzgerald initiated coverage with an underweight rating and a $9.00 target. Earlier in the month, Keefe, Bruyette & Woods maintained a market perform rating but increased the target from $9.00 to $10.00.
In November, both UBS and Susquehanna maintained neutral ratings, with UBS setting a target at $9.00 and Susquehanna increasing its target from $9.00 to $10.00. In late October, Citigroup initiated coverage with a neutral rating and a $9.00 target. The varied ratings suggest that analysts are divided on Western Union’s market outlook.
WU Price Action: Western Union shares were down 6.04% at $8.87 at the time of publication on Friday, according to Benzinga Pro.
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