Western Union (WU) shares are surging 5.04% in pre-market trading on Friday, following the company's impressive third-quarter financial results that exceeded 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 acquisition of UK-based foreign exchange retailer Eurochange in April. This strategic 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. Despite the recent strong performance, it's worth noting that Western Union's stock had been down 23.2% year-to-date prior to this surge, underperforming the S&P SmallCap 600 index. The company was also recently shifted from the S&P MidCap 400 to the S&P SmallCap 600 due to a decrease in market capitalization.