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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Q2 Earnings Highs And Lows: Western Union (NYSE:WU) Vs The Rest Of The Diversified Financial Services Stocks

WU Cover Image

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Western Union (NYSE: WU) and the best and worst performers in the diversified financial services industry.

Diversified financial services encompass specialized offerings outside traditional categories. These firms benefit from identifying niche market opportunities, developing tailored financial products, and often facing less direct competition. Challenges include scale limitations, regulatory classification uncertainties, and the need to continuously innovate to maintain market differentiation against larger competitors expanding their offerings.

The 10 diversified financial services stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 0.9%.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Western Union (NYSE: WU)

With a history dating back to 1851 when it began as a telegraph company, Western Union (NYSE: WU) is a global money transfer service that enables consumers and businesses to send funds across borders and currencies, typically within minutes.

Western Union reported revenues of $1.03 billion, down 3.8% year on year. This print fell short of analysts’ expectations by 1.3%. Overall, it was a slower quarter for the company with a miss of analysts’ EBITDA estimates.

“We continue to execute against our Evolve 2025 strategy, delivering a respectable quarter despite increased macroeconomic and political uncertainty,” said Devin McGranahan, President and Chief Executive Officer.

Western Union Total Revenue

Unsurprisingly, the stock is down 2.4% since reporting and currently trades at $8.23.

Read our full report on Western Union here, it’s free.

Best Q2: Paymentus (NYSE: PAY)

Founded in 2004 to simplify the complex world of bill payments, Paymentus (NYSE: PAY) provides a cloud-based platform that helps utilities, municipalities, and service providers automate billing and payment processes.

Paymentus reported revenues of $280.1 million, up 41.9% year on year, outperforming analysts’ expectations by 8.7%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.

Paymentus Total Revenue

Paymentus delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 13% since reporting. It currently trades at $33.07.

Is now the time to buy Paymentus? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: NerdWallet (NASDAQ: NRDS)

Born from founder Tim Chen's frustration with the lack of transparent credit card information when helping his sister in 2009, NerdWallet (NASDAQ: NRDS) is a digital platform that provides financial guidance to help consumers and small businesses make smarter decisions about credit cards, loans, insurance, and other financial products.

NerdWallet reported revenues of $186.9 million, up 24.1% year on year, falling short of analysts’ expectations by 4.4%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.

NerdWallet delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 1.3% since the results and currently trades at $10.95.

Read our full analysis of NerdWallet’s results here.

Euronet Worldwide (NASDAQ: EEFT)

Operating a global network of over 47,000 ATMs and 821,000 point-of-sale terminals across more than 60 countries, Euronet Worldwide (NASDAQ: EEFT) provides electronic payment solutions including ATM services, prepaid product processing, and international money transfer services.

Euronet Worldwide reported revenues of $1.07 billion, up 8.9% year on year. This number was in line with analysts’ expectations. Aside from that, it was a slower quarter as it logged a significant miss of analysts’ EPS estimates.

The stock is down 9.8% since reporting and currently trades at $89.30.

Read our full, actionable report on Euronet Worldwide here, it’s free.

WEX (NYSE: WEX)

Originally founded in 1983 as Wright Express to serve the fleet card market, WEX (NYSE: WEX) provides payment processing and business solutions across fleet management, employee benefits, and corporate payments sectors.

WEX reported revenues of $659.6 million, down 2.1% year on year. This print surpassed analysts’ expectations by 1%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ Account Servicing segment estimates and a decent beat of analysts’ EBITDA estimates.

The stock is up 4.7% since reporting and currently trades at $171.96.

Read our full, actionable report on WEX here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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