WU stock was trading at $13.42 as of 10:10 AM EDT.
Western Union (NYSE:WU) gave earnings projections for 2023 on Thursday, but they were much lower than what Wall Street was expecting. This is because the company sold its Business Solutions division, lost two important European agents, and stopped doing business in Russia and Belarus, and the dollar is still strong.
In contrast to the average estimate of $1.80, the company will give preliminary guidance that adjusted EPS will be between $1.55 and $1.66 for the coming year. In 2023, adjusted sales are expected to fall by 2%-4%.
The money transfer network will talk about its plans for growth over the next two years at its Investor Day event. By 2025, Western Union anticipates 2% revenue growth, with a yearly increase starting in 2023. For 2024 and 2025, it predicts mid-single-digit EPS growth.
According to the corporation, the growth strategy would redeploy about $150 million in costs from the present cost base over the next five years by concentrating on vendor spending, real estate marketing, and labor costs.
At 9:00 AM ET, the Investor Day Webcast begins, and it lasts until roughly 12:30 PM ET.
Western Union (WU) updated its forecast for 2022 on Wednesday and gave guidance for Q3 that was better than what the market was expecting.
WU stock Q3 forecasts
On Wednesday, a day before its investor presentation, Western Union (NYSE:WU) forecasted higher-than-expected third-quarter earnings. The company plans to report adjusted earnings per share for Q3 of $0.42, which is more than the consensus estimate of $0.39.
Without the income from business solutions, Western Union (WU) expects Q3 revenue of $1.1 billion, which is down 6% from Q2 and up 15% from the same time last year. The estimated cost is $1.08 billion. The stoppage of work in Russia and Belarus cut revenue by three percentage points, while inflation in Argentina added one percentage point. The adjusted operating margin is expected to be 20.6% without help from business solutions.
Should You Invest In Western Union?
Featured Image – Megapixl © Tomnex
Author Jowi Kwasu 
