WEX Stock Rises 17% Since Q4 Earnings & Revenues Beat Estimates

WEX Inc. WEX reported impressive fourth-quarter 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate. The stock has gained 17% since the release of results on Feb. 5 in response to the better-than-expected results.See Zacks Earnings Calendar to stay ahead of market-making news.Quarterly adjusted earnings of $3.57 per share surpassed the Zacks Consensus Estimate by 0.9% but decreased 6.5% from the year-ago quarter. Revenues of $636.5 million beat the consensus estimate by 0.7% but declined 4% on a year-over-year basis.WEX Inc. Price, Consensus and EPS Surprise WEX Inc. price-consensus-eps-surprise-chart | WEX Inc. QuoteSegmental Revenues of WEXThe Mobility segment’s revenues decreased 1.4% from the year-ago quarter to $345.2 million and surpassed our estimate of $334.5 million. Incremental investments in sales and marketing, mainly in digital marketing, drove signings, which resulted in this segment’s revenue growth. The Corporate Payments segment’s revenues were $104.3 million, down 22.7% from the fourth quarter of 2023. They missed our estimate of $122.8 million.The Benefits segment’s revenues increased 4.9% year over year to $186.9 million, beating our estimate of $175.8 million. Strong core market dynamics that grew the SaaS accounts have fueled this segment’s revenue growth.WEX’s Operating ResultsAdjusted operating income declined 6.5% to $269.8 million from the year-ago quarter and surpassed our estimate of $246.1 million. The adjusted operating income margin of 42.4% declined 110 basis points year over year, beating our projected 38.9%.Balance Sheet & Cash Flow of WEXWEX exited the quarter with cash and cash equivalents of $595.8 million compared with $682.6 million at the end of the preceding quarter. The long-term debt was $3.1 billion, flat with the previous quarter.The company generated $638.4 million in cash from operating activities in the quarter. The adjusted free cash flow was $169.5 million. Capital expenditure totaled $38.7 million.GuidanceFor the first quarter of 2025, WEX anticipates revenues in the range of $625-$640 million. The midpoint ($632.5 million) of the guided range is above the current Zacks Consensus Estimate of $628.4 million. Adjusted net income is expected between $3.35 and $3.50 per share. The guided range is below the Zacks Consensus estimate of $3.72.For 2025, revenues are expected to be between $2.60 billion and $2.66 billion. The midpoint ($2.63 billion) of the guided range is above the current Zacks Consensus Estimate of $2.61 billion. Adjusted net income is now expected to be between $14.65 and $15.25 per share. The guided range is below the Zacks Consensus estimate of $16.49.Currently, WEX carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Recent Earnings SnapshotsGartner, Inc. IT reported better-than-expected fourth-quarter 2024 results.IT’s adjusted earnings per share of $5.6 beat the Zacks Consensus Estimate by 69.3% and increased 79.3% from the year-ago quarter. Revenues of $1.7 billion surpassed the consensus estimate by 1.8% and improved 8.2% year over year.Broadridge Financial Solutions, Inc. BR posted impressive second-quarter fiscal 2025 results.BR’s adjusted earnings of $1.6 per share outpaced the consensus mark by 12.2% and surged 69.6% from the year-ago quarter. Total revenues of $1.6 billion surpassed the consensus mark by 3% and rose 12.8% year over year.WM WM reported mixed fourth-quarter 2024 results.WM’s quarterly adjusted earnings of $1.7 per share missed the consensus mark by 5% and declined 2.3% year over year. Total revenues of $5.9 billion surpassed the consensus mark by a slight margin and grew 13% from the year-ago quarter.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report Waste Management, Inc. (WM): Free Stock Analysis Report Gartner, Inc. (IT): Free Stock Analysis Report WEX Inc. (WEX): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks