Money transfer company Western Union (NYSE:WU) will be reporting results this Wednesday after the bell. Here’s what you need to know.
Western Union missed analysts’ revenue expectations last quarter, reporting revenues of $1.01 billion, down 1.3% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EBITDA estimates and full-year EPS guidance missing analysts’ expectations significantly.
Is Western Union a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Western Union’s revenue to decline 1.1% year on year, in line with its flat revenue from the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Western Union has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Western Union’s peers in the diversified financial services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Donnelley Financial Solutions delivered year-on-year revenue growth of 5.5%, beating analysts’ expectations by 2.8%, and WEX reported revenues up 12.8%, topping estimates by 3.2%. Donnelley Financial Solutions traded up 25.9% following the results while WEX was down 3.3%.
Read our full analysis of Donnelley Financial Solutions’s results here and WEX’s results here.
There has been positive sentiment among investors in the diversified financial services segment, with share prices up 5.2% on average over the last month. Western Union is up 3.9% during the same time and is heading into earnings with an average analyst price target of $6.63 (compared to the current share price of $6.33).
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