JMP reiterates Market Perform rating on Western Union stock amid macro challenges

Investing.com - JMP has reiterated its Market Perform rating on Western Union Co. (NYSE:WU) following the company’s second-quarter results, which showed adjusted EPS of $0.42, falling short of analyst expectations. Trading at a P/E ratio of just 3.1x, the company maintains a GOOD financial health score according to InvestingPro data.

The earnings miss was primarily attributed to lower-than-expected revenue as macroeconomic pressures related to U.S. immigration policies negatively impacted send volume. Western Union reported its quarterly results on Monday.

JMP identified three fundamental headwinds facing Western Union: market saturation, the ongoing shift to mobile and digital money transfer services, and political pressure on immigration in the U.S. that is creating a "chilling effect" on consumers who typically use store-based agents.

Despite continued growth in Western Union’s digital segment, JMP noted that the company’s Evolve 2025 operational initiatives have not yet translated into meaningful consolidated growth for the business.

The research firm views Western Union shares as fairly valued at approximately 5 times estimated 2025 EBITDA, with an approximately 11% dividend yield, citing the company’s strong cash flow generation and ongoing capital returns to shareholders as offsetting factors to its operational challenges. InvestingPro analysis suggests the stock is currently undervalued, with a 20-year track record of consistent dividend payments and an EV/EBITDA ratio of 4.9x.

In other recent news, Western Union Co. reported its second-quarter 2025 earnings, which showed a slight miss on both earnings per share (EPS) and revenue compared to forecasts. The company’s adjusted EPS was $0.42, falling short of the expected $0.44, representing a 4.55% negative surprise. Revenue also did not meet expectations, coming in at $1.03 billion against the anticipated $1.04 billion, a 0.96% shortfall. These results are part of the recent developments surrounding the company. There were no major mergers or acquisitions reported in this period. Additionally, there have been no recent upgrades or downgrades from analysts that were mentioned. Investors may find these financial results noteworthy as they reflect the company’s recent performance in the market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.