Western Union (WU) has made significant operational progress by leveraging its expertise and well-established global financial network. However, following the release of its third-quarter earnings report last month, its shares plunged in price. In addition, with analysts expecting slower revenue growth by the company in the coming quarter, is it worth adding the stock to one’s portfolio? Let's find out.The Western Union Company (NYSE:WU) in Englewood, Colo., is a global leader in cross-border, cross-currency money transfer and payment services. Based on technology, expertise, and the strength of its omnichannel global financial network, the company has established solid footing to meet the demand for cross-border money movement and payments.
However, WU’s stock has declined 18.1% in price year-to-date and 9.5% over the past three months. Closing yesterday's trading session at $17.96, it is currently trading 32.5% below its 52-week high of $26.61.
In its recently released third-quarter results, the company beat the consensus earnings estimate, while its revenues fell short of projections. Furthermore, analysts expect WU to report total revenue of around $1.29 billion in the fourth quarter, bringing its full-year amount to $5.08 billion, or roughly 4% lower than its 2019 figure. This slow recovery has made investors cautious about the stock.