DENVER - Western Union Company (NYSE:WU) reported a positive start to the year with first-quarter earnings and revenue surpassing analyst expectations, prompting the financial services firm to raise its full-year guidance for 2024. The stock was up 1% in aftermarket trading.
The company's Q1 adjusted earnings per share (EPS) came in at $0.45, $0.04 higher than the analyst consensus of $0.41. Revenue for the quarter was also above estimates at $1.05 billion, compared to the expected $1.01 billion.
The company's GAAP revenue showed a 1% increase from the same quarter last year, while on an adjusted basis, which accounts for constant currency and Argentina inflation, revenue grew 3%. The branded digital segment was a standout performer, with revenue climbing 9% on both a reported and adjusted basis, driven by a 13% increase in transactions.
Western Union's President and CEO, Devin McGranahan, attributed the strong quarterly performance to the acceleration of the digital business and the company's success in stabilizing its retail business. He expressed optimism about the company's trajectory for the remainder of the year.
Looking ahead, Western Union raised its full-year 2024 revenue guidance to a range of $4.15 billion to $4.23 billion, up from the previous forecast of $4.075 billion to $4.175 billion. The EPS guidance for the year was also lifted to a range of $1.70 to $1.80, from the earlier range of $1.57 to $1.67, which surpasses the analyst consensus of $1.70.
The company's GAAP EPS for the first quarter increased by 3% to $0.41 compared to $0.40 in the prior year period. The adjusted EPS, which reflects a lower share count, saw a 5% rise from $0.43 to $0.45. The GAAP operating margin for the quarter was reported at 18.3%, down from 19.7% in the same period last year, primarily due to the timing of marketing spend.
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