Western Union (WU) Reports Q1 Revenue Decline, Digital Revenue Growth

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2 days ago
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Highlights:

  • Western Union's non-GAAP EPS meets expectations, but revenue declines.
  • Branded digital revenue increases by 8%, transaction volume up by 14%.
  • Analysts project a 14.89% potential upside on WU's stock price.

Western Union (WU, Financial) recently announced its first-quarter earnings, revealing a non-GAAP EPS of $0.41, which met market expectations. Unfortunately, the company experienced a 6.3% decline in revenue year-over-year, bringing in $983.6 million, falling short of estimates by $7.78 million. Despite this, Western Union's branded digital revenue experienced an 8% adjusted increase, with a notable 14% rise in transactions.

Analyst Projections for Western Union

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According to the latest insights from 13 financial analysts, Western Union Co (WU, Financial) is expected to reach an average target price of $11.62 over the next year. These projections range from a low of $9.00 to a high of $15.00. Given the current stock price of $10.11, the average target suggests a potential upside of 14.89%. For a more in-depth look at these estimates, please visit the The Western Union Co (WU) Forecast page.

The firm's average brokerage recommendation, sourced from 19 brokerage firms, stands at 3.4, equating to a "Hold" status. This recommendation scale spans from 1 (Strong Buy) to 5 (Sell), providing investors with a clearer view of the market's stance.

Evaluating Western Union's Valuation

GuruFocus' proprietary metrics estimate that the one-year GF Value of The Western Union Co (WU, Financial) is $13.21, indicating a promising upside of 30.66% from the current price of $10.11. The GF Value is a comprehensive fair value estimate based on historical trading multiples, past business growth, and forward-looking performance projections. To explore a more detailed analysis, please consult the The Western Union Co (WU) Summary page.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.