Western Union (NYSE:WU) Stock Price Up 10.8% on Better-Than-Expected Earnings

Shares of The Western Union Company (NYSE:WU) rose 10.8% during trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $7.58 and last traded at $7.3040. 4,156,523 shares traded hands during trading, a decline of 53% from the average session volume of 8,929,600 shares. The stock had previously closed at $6.59.

The credit services provider reported $0.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.34 by $0.08. The company had revenue of $1.01 billion for the quarter, compared to analyst estimates of $1.02 billion. Western Union had a net margin of 9.79% and a return on equity of 50.89%. The firm’s revenue was down 2.3% on a year-over-year basis. During the same period in the previous year, the firm posted $0.47 EPS.

Key Western Union News

Here are the key news stories impacting Western Union this week:

• Positive Sentiment: Western Union reported Q3 adjusted earnings of $0.42 per share, above analyst estimates of roughly $0.34–$0.35. It forecast 2026 adjusted EPS of $1.28–$1.38, slightly ahead of the $1.27 FactSet estimate, and is targeting more than $80 million in run-rate cost savings. Article: Western Union projects 2026 adjusted EPS and cost savings
• Positive Sentiment: Management is investing in digital services, AI and a stablecoin card as it seeks new growth opportunities alongside cost reductions. These initiatives could help counter the traditional business’s sluggish revenue, though their impact remains to be seen. Article: Western Union Fights Revenue Slump With Stablecoin Card
• Negative Sentiment: Revenue was about $1.01 billion, below the roughly $1.02 billion expected, and declined 2.3% year over year. EPS also fell from $0.47 a year earlier, underscoring continued pressure on the core business despite the quarterly earnings beat. Article: Western Union reports sales below analyst estimates
• Negative Sentiment: A report highlighted Western Union’s approximately 15.3% dividend yield as a warning sign for dividend sustainability. This is an external caution, not an announced dividend cut. Article: Western Union’s high dividend yield and potential warning signs
• Neutral Sentiment: Western Union’s pending Intermex transaction faces a near-term deadline: either party may terminate the agreement on Nov. 10. The possibility adds deal uncertainty, although the provided report does not establish whether termination is expected. Article: Intermex deal termination provision

Analysts Set New Price Targets

Several brokerages recently commented on WU. Royal Bank Of Canada restated a “sector perform” rating and set a $8.00 target price on shares of Western Union in a research report on Friday, October 2nd. New Street Research reaffirmed a “reduce” rating on shares of Western Union in a report on Thursday, August 13th. Morgan Stanley decreased their price target on shares of Western Union from $7.00 to $6.00 and set an “underweight” rating on the stock in a report on Friday, July 31st. Cantor Fitzgerald cut their price target on shares of Western Union from $7.00 to $6.00 and set an “underweight” rating for the company in a research report on Tuesday, September 29th. Finally, Weiss Ratings lowered shares of Western Union from a “hold (c-)” rating to a “sell (d+)” rating in a report on Thursday, October 8th. Seven analysts have rated the stock with a Hold rating and seven have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Reduce” and a consensus price target of $7.18.

Institutional Investors Weigh In On Western Union

A number of institutional investors have recently modified their holdings of WU. BlackRock Inc. purchased a new stake in Western Union during the 2nd quarter valued at about $241,806,000. Dimensional Fund Advisors LP boosted its stake in shares of Western Union by 15.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 7,902,175 shares of the credit services provider’s stock worth $68,989,000 after buying an additional 1,039,604 shares during the last quarter. First Trust Advisors LP grew its stake in shares of Western Union by 19.4% during the 1st quarter. First Trust Advisors LP now owns 3,966,409 shares of the credit services provider’s stock valued at $34,627,000 after purchasing an additional 645,451 shares during the period. Bank of America Corp DE raised its position in Western Union by 43.5% in the first quarter. Bank of America Corp DE now owns 3,838,382 shares of the credit services provider’s stock worth $33,509,000 after acquiring an additional 1,163,577 shares during the period. Finally, Bank of New York Mellon Corp raised its holdings in Western Union by 0.4% in the 1st quarter. Bank of New York Mellon Corp now owns 2,789,861 shares of the credit services provider’s stock worth $24,355,000 after purchasing an additional 12,295 shares during the period. 91.81% of the stock is owned by hedge funds and other institutional investors.

Western Union Trading Up 7.9%

The stock has a market capitalization of $2.22 billion, a PE ratio of 5.78 and a beta of 0.56. The stock has a 50-day moving average price of $6.44 and a two-hundred day moving average price of $8.03. The company has a debt-to-equity ratio of 2.95, a quick ratio of 1.12 and a current ratio of 1.12.

About Western Union

Western Union is a global provider of money movement and payment services. Through its branded digital platforms and retail agent network, the company enables consumers to send and receive money, transfer funds between bank accounts and digital wallets, pay bills, and purchase money orders in select markets.

The company serves customers across more than 200 countries and territories, with services available through physical locations as well as its website and mobile application. Its operations connect individuals and businesses across international borders, supporting both cash-based transactions and account-to-account transfers.

Western Union traces its origins to 1851, when it was established as a telegraph company before expanding into money transfer and payment services.