The Western Union Company (NYSE:WU) is scheduled to report Q3 earnings results on October 29, 2020.
The company is expected to report earnings of $0.46/share on revenue of $1.246 billion. The consensus earnings per share (EPS) of $0.46/share is based on a poll of 20 analysts and represents a decline in eps of −5.6% over the same quarter last year, when the company reported earnings of $0.49/share.
The revenue forecast of $1.246 billion based on a poll of 17 analysts implies a year-over-year (YoY) decline in revenue of −4.7%. Last year the company reported $1.307 billion in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Earnings Call Trends
Historically, management has exceeded analyst expectations 4 out of the last 8 tracked quarters, missed 3 quarters, and met expectations 1 quarter.
What are your expectations from The Western Union Company for earnings this quarter? Let us know in the comments!
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by falling −5.5%.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
|August 4, 2020||$24.21||$22.88||−5.5%||Decline|
|May 5, 2020||$18.85||$19.47||3.3%||Increase|
|February 11, 2020||$28.30||$26.13||−7.7%||Decline|
|October 31, 2019||$25.20||$26.48||5.1%||Increase|
Fundamentals And Technical Analysis
The Western Union Company is currently trading at $21.39/share, down −2.6% for the day. The company is trading at approximately 75.2% of its 52-week high of $28.45/share. The company’s stock price is down −6.5% since the last earnings report and down −1.2% over the previous week.
The company’s 14 Day Relative Price Index (RSI) of 42.23 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of 14.44 and a forward P/E multiple of 12.23.
The Western Union Company’s current share price also implies a price-to-book (P/B) multiple of −119.77. The following table summarizes some other key fundamental ratios:
|Last Reported Fiscal Period Key||FY2020.Q2|
|Period End Date||June 30, 2020|
|Stock Price (Current)||$21.39|
|P/E Ratio (Fwd)||12.2x|
|Total Debt / Total Capital||26.9%|
|Levered Free Cash Flow||$827.2 million|
|EV / EBITDA||8.9x|
The Western Union Company is a mid-cap stock with a market capitalization of $8.791 billion and a total enterprise value of $10.93 billion. The company operates in the Information Technology sector and the IT Services industry.
The Western Union Company provides money movement and payment services worldwide. The company operates in two segments, Consumer-to-Consumer and Business Solutions. The Consumer-to-Consumer segment facilitates money transfers between two consumers, primarily through a network of third-party agents. This segment offers international cross-border transfers and intra-country transfers, as well as money transfer transactions through Websites and mobile devices. The Business Solutions segment provides payment and foreign exchange solutions, primarily cross-border and cross-currency transactions for small and medium size enterprises, other organizations, and individuals; and foreign currency forward and option contracts. The company also offers cash-based and electronic-based bill payment services that facilitates payments from consumers to businesses and other organizations, as well as offers money order and other services. It serves primarily through a network of agents. The Western Union Company was incorporated in 2006 and is headquartered in Denver, Colorado.