Does Earnings Surprise History Hold Any Clue for The Western Union (NYSE:WU)

Earnings results for The Western Union (NYSE:WU)

Western Union Company (The) is expected* to report earnings on 10/29/2020 after market close. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 6 analysts’ forecasts, the consensus EPS forecast for the quarter is $0.47. The reported EPS for the same quarter last year was $0.49.

The Western Union last released its earnings data on August 4th, 2020. The credit services provider reported $0.41 earnings per share for the quarter, beating analysts’ consensus estimates of $0.35 by $0.06. The company had revenue of $1.11 billion for the quarter, compared to analysts’ expectations of $1.08 billion. Its quarterly revenue was down 16.8% on a year-over-year basis. The Western Union has generated $1.73 earnings per share over the last year and currently has a price-to-earnings ratio of 14.0. The Western Union has confirmed that its next quarterly earnings report will be published on Thursday, October 29th, 2020.

Analyst Opinion on The Western Union (NYSE:WU)

17 Wall Street analysts have issued ratings and price targets for The Western Union in the last 12 months. Their average twelve-month price target is $22.63, predicting that the stock has a possible upside of 11.67%. The high price target for WU is $28.00 and the low price target for WU is $18.00. There are currently 6 sell ratings, 7 hold ratings and 4 buy ratings for the stock, resulting in a consensus rating of “Hold.”

The Western Union has received a consensus rating of Hold. The company’s average rating score is 1.88, and is based on 4 buy ratings, 7 hold ratings, and 6 sell ratings. According to analysts’ consensus price target of $22.63, The Western Union has a forecasted upside of 11.7% from its current price of $20.26. The Western Union has been the subject of 5 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: The Western Union (NYSE:WU)

The Western Union is a leading dividend payer. It pays a dividend yield of 4.32%, putting its dividend yield in the top 25% of dividend-paying stocks. The Western Union has only been increasing its dividend for 1 years. The dividend payout ratio of The Western Union is 52.02%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, The Western Union will have a dividend payout ratio of 45.92% next year. This indicates that The Western Union will be able to sustain or increase its dividend.

Insiders buying/selling: The Western Union (NYSE:WU)

In the past three months, The Western Union insiders have not sold or bought any company stock. Only 1.27% of the stock of The Western Union is held by insiders.

Earnings and Valuation of The Western Union (NYSE:WU

Earnings for The Western Union are expected to grow by 9.50% in the coming year, from $1.79 to $1.96 per share. The P/E ratio of The Western Union is 13.97, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 18.65. The P/E ratio of The Western Union is 13.97, which means that it is trading at a less expensive P/E ratio than the Business Services sector average P/E ratio of about 38.53. The Western Union has a PEG Ratio of 0.47. PEG Ratios below 1 indicate that a company could be undervalued.

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