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Western Union Q3 revenue misses estimates driven by North America retail slowdown

By Reuters News


Overview

  • Money transfer firm's Q3 revenue fell 2% yr/yr, missing analyst expectations

  • Adjusted EPS for Q3 beat analyst expectations

  • Revenue decline driven by North America retail slowdown, partly offset by digital and consumer services growth


Outlook

  • Western Union sees 2026 adjusted EPS at $1.28 to $1.38, regardless of Intermex deal close

  • Company expects 2026 adjusted revenue growth of 0% to 1% if Intermex deal closes

  • Company expects 2026 adjusted revenue to decline (2%) to (1%) if Intermex deal does not close


Result Drivers

  • BRANDED DIGITAL GROWTH - Branded Digital revenue rose 8% with 21% transaction growth, helping offset declines elsewhere

  • NORTH AMERICA RETAIL SLOWDOWN - Company said lower adjusted revenue was largely due to a slowdown in the North America retail business

  • HIGHER OPERATING EXPENSES - Operating margins were impacted by higher operating expenses and lower revenues from the CMT retail business


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$1 bln

$1.02 bln (14 Analysts)

Q3 Adjusted EPS

Beat

$0.42

$0.34 (17 Analysts)

Q3 EPS

$0.25


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 11 "hold" and 7 "sell" or "strong sell"

  • The average consensus recommendation for the business support services peer group is "buy."

  • Wall Street's median 12-month price target for The Western Union Company is $6.50, about 4% above its November 3 closing price of $6.25

  • The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 4 three months ago


Reuters Recommended Reads

  • Nov 3 - Marqeta Q3 revenue slightly beats estimates on volume growth

  • Nov 2 - Paymentus Q3 revenue beats on higher billers and transaction volumes

  • Nov 3 - Flywire Q3 revenue rises, beats analyst estimates


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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