Analyst Estimates: Here's What Brokers Think Of The Western Union Company (NYSE:WU) After Its Full-Year Report
The Western Union Company (NYSE:WU) shareholders are probably feeling a little disappointed, since its shares fell 5.1% to US$12.08 in the week after its latest full-year results. It was a credible result overall, with revenues of US$4.4b and statutory earnings per share of US$1.68 both in line with analyst estimates, showing that Western Union is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Western Union
Following the recent earnings report, the consensus from 18 analysts covering Western Union is for revenues of US$4.15b in 2024. This implies a measurable 4.8% decline in revenue compared to the last 12 months. Statutory earnings per share are forecast to dip 6.1% to US$1.68 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$4.16b and earnings per share (EPS) of US$1.67 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$13.18, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Western Union at US$18.00 per share, while the most bearish prices it at US$10.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would also point out that the forecast 4.8% annualised revenue decline to the end of 2024 is roughly in line with the historical trend, which saw revenues shrink 4.7% annually over the past five years By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 3.8% per year. So while a broad number of companies are forecast to grow, unfortunately Western Union is expected to see its revenue affected worse than other companies in the industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Western Union analysts - going out to 2026, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 2 warning signs for Western Union (of which 1 makes us a bit uncomfortable!) you should know about.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
