WU Earnings Prediction
The chart below shows how WU performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WU sees a -0.45% change in stock price 10 days leading up to the earnings, and a -2.20% change 10 days following the report. On the earnings day itself, the stock moves by -0.02%. This data can give you a slight idea of what to expect for the next quarter's release.
WU Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.06B
0.56%
2.14%
Gross Margin
37.47%
-0.48%
-0.74%
Operating Margin
16.83%
11.16%
-4.65%
Net Margin
36.45%
201.99%
42.61%
EPS
1.14
225.71%
46.15%
No Data Available
WU Earnings Analysis
Western Union Co Corporation (WU.N) Earnings Conference Call
Positive
Q4 Revenue Performance: Revenue reached $1,060,000,000 in Q4 2024, with adjusted revenue growth of 1.4%, marking the third consecutive quarter of positive growth excluding Iraq.
Consumer Services Revenue Growth: Consumer services segment achieved a remarkable 23% adjusted revenue growth in Q4, driven by strong performance in the media network business and retail money orders.
Transaction and Revenue Growth: Branded digital business reported 13% transaction growth and 8% adjusted revenue growth in Q4, continuing a trend of double-digit transaction growth for seven consecutive quarters.
EPS Increase Analysis: Adjusted earnings per share (EPS) increased to $0.40, up 3 cents from the previous year, reflecting higher adjusted operating profit and a lower share count.
Shareholder Returns and Repurchases: In 2024, the company returned nearly $500,000,000 to shareholders through dividends and share repurchases, with a new $1,000,000,000 share repurchase authorization approved by the Board.
Negative
Stagnant Revenue Performance: Adjusted revenue growth excluding Iraq was only 50 basis points for the full year 2024, indicating a stagnation in revenue performance compared to previous years.
Revenue Stability Challenges: CMT adjusted revenue, excluding Iraq, was flat year over year in Q4, and down 1% for the full year, highlighting ongoing challenges in this segment.
Operating Margin Decline: Operating margins for the full year declined to 19% from 20% in the prior year, primarily due to lower revenue from Iraq, reflecting pressure on profitability.
Cash Flow Constraints: Operating cash flow was negatively impacted by higher taxes paid, including $160 million related to deferred tax payments, which constrained cash generation capabilities.
Revenue Headwinds Anticipated: The company anticipates a headwind in the first and second quarters of 2025 due to the absence of elevated revenue from Iraq, which contributed $65 million in Q1 2024 and $34 million in Q2 2024.
WU FAQs
How does WU typically perform around its earnings report dates?
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WU Earning Call Sentiment
Earnings call transcript: Western Union Q4 2024 reveals revenue growth
WU.N
3.46%Positive
The earnings call reveals strong financial performance, with revenue and EPS growth, improved operating margins, and significant shareholder returns. The positive outlook is bolstered by strategic acquisitions and digital growth, despite some uncertainties in consumer services and North American revenues. The Q&A section reflects cautious optimism, with management addressing potential risks and emphasizing strategic investments. The market cap suggests moderate stock price volatility, aligning with a positive sentiment prediction.
