The expected EPS of $0.42 represents a 6.7% decrease from the previous year, indicating challenges in maintaining profitability.
Revenue projections of $992.4 million reflect a 4.6% decrease, suggesting headwinds in revenue generation.
Analysts have revised the consensus EPS estimate downward by 1.5%, showing a more cautious outlook on Western Union’s financial performance.
Western Union (NYSE: WU) is a global leader in cross-border, cross-currency money movement and payments. The company provides a wide range of services, including money transfers, bill payments, and business solutions. Western Union competes with other financial service providers like MoneyGram and PayPal. On April 23, 2025, Western Union is set to release its quarterly earnings, with analysts estimating an earnings per share (EPS) of $0.42 and revenue of approximately $992.4 million.
The expected EPS of $0.42 represents a 6.7% decrease from the previous year, as highlighted by Zacks. This decline indicates challenges in maintaining profitability. Revenue projections are set at $992.4 million, reflecting a 4.6% decrease from the same period last year. These figures suggest that Western Union is facing headwinds in its revenue generation, possibly due to increased competition or market conditions.
Over the past month, analysts have revised the consensus EPS estimate downward by 1.5%. This reassessment indicates a more cautious outlook on Western Union’s financial performance. Such revisions can significantly influence investor reactions and short-term stock price movements, as they reflect changing expectations about the company’s earnings potential.
Western Union’s financial metrics provide additional context for its valuation. The company’s price-to-earnings (P/E) ratio is approximately 3.53, indicating a relatively low valuation compared to its earnings. The price-to-sales ratio stands at about 0.77, suggesting that the market values its sales at less than one times its revenue. These ratios highlight the market’s cautious stance on Western Union’s growth prospects.
The company’s enterprise value to operating cash flow ratio is around 10.53, providing insight into how the market values its cash-generating ability. With an earnings yield of approximately 28.30%, Western Union offers a strong return on investment relative to its share price. However, the debt-to-equity ratio of about 3.23 highlights a significant level of debt compared to its equity, which could pose risks if not managed effectively. The current ratio of approximately 1.27 suggests that Western Union has a reasonable level of liquidity to cover its short-term liabilities.
