The Western Union Firm WU is scheduled to launch first-quarter 2024 outcomes on Apr 24, 2024, after market shut.
Q1 Estimates
The Zacks Consensus Estimate for Western Union’s first-quarter earnings per share is pegged at 40 cents, indicating a decline of seven% from the year-ago quarter’s reported determine.
The consensus mark for revenues is pegged at $1 billion, suggesting a 2.7% fall from the year-ago quarter’s reported quantity.
Earnings Shock Historical past
Western Union’s backside line beat estimates in every of the trailing 4 quarters, the typical shock being 20.11%. That is depicted within the chart under:
The Western Union Firm Value and EPS Shock
The Western Union Company price-eps-surprise | The Western Union Firm Quote
Components to Observe
Within the first quarter, revenues of Western Union are anticipated to have benefited on the again of its digital enterprise energy and a steady retail enterprise. This, in flip, is more likely to have been pushed by favorable transaction developments.
The East Asia and Oceania (APAC) area is more likely to have contributed to Western Union’s digital enterprise on the again of recent buyer beneficial properties and strong digital conversion charges.
Nevertheless, revenues within the Client Cash Switch (CMT) section, beforehand known as the Client-to-Client unit, are more likely to have suffered a blow resulting from weak point in enterprise throughout Europe and the Commonwealth of Impartial States, and North America. However, the upside is more likely to have been partly offset by rising revenues from the Center East, Africa and South Asia, and Latin America and the Caribbean areas.
The Zacks Consensus Estimate for the CMT unit’s revenues is pegged at $921 million, which signifies a 1.8% decline from the year-ago quarter’s reported determine. We anticipate it to lower 1.6% yr over yr within the first quarter. Our estimate for the section’s working revenue suggests a 12.6% fall yr over yr.
In the meantime, energy within the services suite encompassing retail cash orders, invoice funds, pay as you go playing cards, lending merchandise and international forex trade is predicted to have pushed revenues of the Client Providers section within the to-be-reported quarter.
The Zacks Consensus Estimate for revenues within the Client Providers unit is at $87 million, which means a 4.8% rise from the year-ago quarter’s reported quantity. We anticipate it to extend 1% yr over yr within the first quarter. Our estimate suggests the section’s working revenue to witness 8.8% year-over-year development.
WU’s margins are more likely to have acquired some respite within the to-be-reported quarter on the again of the corporate’s cost-curbing initiatives within the type of an working expense redeployment program. We anticipate complete working prices to say no 1% yr over yr within the first quarter resulting from an estimated 1.3% year-over-year decline in the price of companies.
What Our Quantitative Mannequin Predicts
Our confirmed mannequin doesn’t conclusively predict an earnings beat for Western Union this time round. The mix of a optimistic Earnings ESP and a Zacks Rank #1 (Sturdy Purchase), 2 (Purchase) or 3 (Maintain) will increase the chances of an earnings beat. Nevertheless, that’s not the case right here, as you see under.
Earnings ESP: Western Union has an Earnings ESP of 0.00%. You possibly can uncover the perfect shares earlier than they’re reported with our Earnings ESP Filter.
Zacks Rank: WU at the moment has a Zacks Rank #4 (Promote).
Shares to Take into account
Whereas an earnings beat seems unsure for Western Union, listed below are some firms from the Business Services house, which in response to our mannequin, have the appropriate mixture of components to beat on earnings this time round:
APi Group Company APG has an Earnings ESP of +2.06% and a Zacks Rank of 1, at current. You possibly can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for APG’s first-quarter 2024 earnings is pegged at 32 cents per share, which signifies an enchancment of 28% from the year-ago quarter’s reported determine.
APi Group’s backside line beat estimates in every of the trailing 4 quarters, the typical shock being 5.05%.
CRA Worldwide, Inc. CRAI has an Earnings ESP of +0.54% and a Zacks Rank of two, at current. The Zacks Consensus Estimate for CRAI’s first-quarter 2024 earnings is pegged at $1.39 per share, suggesting 7.8% development from the year-ago quarter’s reported determine.
CRA Worldwide’s backside line beat estimates in two of the trailing 4 quarters and missed the mark twice, the typical shock being 8.06%.
Envestnet, Inc. ENV has an Earnings ESP of +1.23% and a Zacks Rank of three, at current. The Zacks Consensus Estimate for ENV’s first-quarter 2024 earnings is pegged at 54 cents per share, which signifies an enchancment of 17.4% from the year-ago quarter’s reported determine.
Envestnet’s earnings beat estimates in three of the trailing 4 quarters and matched the mark as soon as, the typical shock being 7.72%.
Keep on prime of upcoming earnings bulletins with the Zacks Earnings Calendar.
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
