Although Western Union Co (NYSE:WU) unexpectedly reported its first-quarter adjusted earnings 30% below estimates, management kept its full-year guidance unchanged, implying an acceleration in earnings in the second half of the year, according to JPMorgan.
The Western Union Analyst: Analyst Tien-tsin Huang maintained an Underweight rating and price target of $9.
The Western Union Thesis: Despite reporting its first-quarter revenue of $983 million above Street expectations of $961 million, the company posted a 40% year-on-year decline in adjusted earnings, Huang said in the note.
Check out other analyst stock ratings.
He added that statements from Western Union indicate that 50% of the earnings miss was due to items management expected, namely:
- Lower fixed cost coverage in owned locations, especially in Consumer Services following its close of Eurochange in April 2025
- Timing of vendor incentives
- Higher cost of new strategic partnerships
“Recall that last quarter, …