DENVER - Western Union (NYSE:WU) reported third-quarter results that were in line with analyst expectations, as the company's digital and consumer services segments showed growth despite challenges in Iraq. The stock edged up 1% following the announcement.
The money transfer giant posted adjusted earnings per share of $0.46, beating the analyst consensus of $0.44. Revenue for the quarter came in at $1.04 billion, matching analyst estimates. While reported revenue declined 6% YoY, adjusted revenue excluding Iraq grew 1%.
Western Union's Branded Digital segment saw revenue increase 8%, or 9% on an adjusted basis, with transactions up 15%. The Consumer Services segment demonstrated strong growth, with revenue rising 32% on a reported basis and 15% adjusted.
"We are pleased with third quarter results, which demonstrate continued progress of our Evolve 2025 strategy," said Devin McGranahan, President and CEO. "We've maintained mid-single digit transaction growth in our Consumer Money Transfer business for five quarters in a row and are now seeing the effect on revenue."
The company maintained its full-year 2024 guidance, projecting adjusted earnings per share of $1.70-$1.80 and revenue of $4.15-4.225 billion. The midpoint of this guidance aligns closely with analyst expectations.
Western Union's GAAP operating margin for the quarter was 15.9%, down from 19.2% in the prior year period, while adjusted operating margin slightly decreased to 19.1% from 19.6%. The company attributed the decline to a lower contribution from Iraq and strategic investments in new products.
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