Western Union (WU) stock is soaring 8.72% in pre-market trading on Friday, following the release of its impressive third-quarter financial results that surpassed analyst expectations. The global money transfer firm's strong performance was primarily driven by the expansion of its Travel Money business and significant growth in its consumer services segment.

Western Union reported better-than-expected Q3 profit and revenue, according to data compiled by LSEG. The company's consumer services segment grew by an impressive 49% in the third quarter, bolstered by the strategic acquisition of UK-based foreign exchange retailer Eurochange in April. This move has evidently paid off, contributing significantly to Western Union's robust performance. However, the company noted a slowdown in its North America retail business, which kept year-on-year profit growth relatively flat.

Adding to the positive sentiment, RBC raised its target price for Western Union from $9 to $10, reflecting increased confidence in the company's future prospects. This upgrade, combined with the strong Q3 results, has reignited investor interest in the stock. The pre-market surge marks a significant turnaround for Western Union, as its shares had been down 23.2% year-to-date prior to this rally. Despite the recent shift from the S&P MidCap 400 to the S&P SmallCap 600 due to market capitalization changes, Western Union's strategic expansion efforts and financial performance have clearly resonated with investors, driving the stock's impressive pre-market gains.