- Western Union ( NYSE: WU ) introduced on Thursday 2023 earnings guidance that falls far short of Wall Street's consensus as its operations are affected by the sale of its Business Solutions unit, the loss of two key agents in Europe, the suspension of operations in Russia and Belarus, and the continued strength of the U.S. dollar.
- The company will introduce preliminary guidance for next year for adjusted EPS of $1.55-$1.66, lower than the $1.80 consensus estimate. 2023 adjusted revenue is expected to decline ~2%-4%.
- The money transfer network will also lay out plans for growth for the following two years at its Investor Day event. Western Union expects 2% revenue growth by 2025, including annual improvement beginning in 2023. It guides for mid-single digit EPS growth for 2024 and 2025.
- The growth strategy plans to redeploy ~$150M in expenses in the current cost base over the next five years, to be executed through focusing on vendor spend, real estate marketing, and people costs, the company said.
- The Investor Day Webcast starts at 9:00 AM ET and runs to about 12:30 PM.
- On Wednesday, Western Union ( WU ) i ssued Q3 guidance above Street estimates and reiterated 2022 guidance.
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Western Union sees 2023 earnings below consensus, maps out growth plan