Citizens reaffirmed a Market Perform rating on Western Union Co. as the money-transfer firm navigates a secular migration to digital payments alongside persistent macroeconomic pressures that continue to weigh on revenue. The broker noted these factors after the company released fourth-quarter results and an initial outlook for 2026.
In its quarter, Western Union reported adjusted earnings per share of $0.45, modestly above the consensus estimate of $0.43. Revenue, however, fell short of management guidance and external expectations. Reported top-line figures were approximately 8% below the midpoint of management’s outlook and came in at $1.0 billion versus the anticipated $1.04 billion.
Despite the revenue decline, which was down 3.8% over the last twelve months, the shares trade at a price-to-earnings ratio near 6.1. InvestingPro analysis cited in the reporting suggests the stock appears undervalued relative to its Fair Value, even as top-line trends remain negative.
Management issued an initial guide for 2026 that, when excluding expected upside tied to the Intermex acquisition, sits below consensus for the top line. Intermex-related contributions are expected primarily in the second half of the year, and the guidance implies only minimal organic growth despite an increasing share of digital volume in the business mix.
Citizens analyst David M. Scharf reiterated that the secular shift toward digital payments and ongoing macro pressures are key drags on revenue. Scharf had an earnings estimate for the quarter of $0.42. The firm nevertheless left its Market Perform rating in place.
Additional data points noted by market watchers include that three analysts have trimmed earnings estimates for the upcoming period, according to InvestingPro Tips. These downward revisions underscore the uncertainty around near-term profit trajectories and top-line recovery.
The quarter’s mixed results - an EPS beat paired with a revenue miss - illustrate Western Union’s capacity to manage earnings against headwinds while highlighting persistent difficulty in meeting revenue targets. Investors and market participants evaluating the company’s prospects will likely weigh the limited organic growth implied by guidance, the timing of Intermex contributions, and the continued secular shift in payment behavior.