WEX Inc. (WEX - Free Report) delivered better-than-expected second-quarter 2021 results.
Adjusted earnings of $2.31 per share surpassed the Zacks Consensus Estimate by 16.1 and increased 91% year over year. Total revenues of $459.5 million surpassed the consensus mark by 5.1% and increased 32% year over year.
Notably, WEX’s shares have rallied 22.9% in the past year compared with 6.4% growth of the industry it belongs to.
Revenues by Segment
Fleet Solutions revenues were up 34% year over year to $274.4 million. Travel and Corporate Solutions revenues of $81.8 million were up 50% year over year. Health and Employee Benefit Solutions revenues of $103.3 million increased 17% year over year.
Key Performance Metrics
Average number of vehicles serviced was 16.2 million, up 7% from the year-ago quarter’s figure. Total fuel transactions processed increased 24% from the year-ago quarter’s tally to 158.7 million. Payment processing transactions were up 26% year over year to 130.1 million. Travel and Corporate Solutions' purchase volume climbed more than 100% year over year to $8.7 billion. Health and Employee Benefit Solutions' average number of Software-as-a-Service accounts in the United States were up 13% to 16.4 million, year over year.
Operating Results
Adjusted operating income was up 67.9% from the prior-year quarter’s figure to $166.9 million. Adjusted operating income margin increased to 36.3% from the year-ago quarter’s level 28.7%.
Balance Sheet
WEX exited the quarter with cash and cash equivalents balance of $425.3 million compared with $561.2 million witnessed at the end of the prior quarter. Long-term debt was $2.9 billion compared with $2.5 billion at the end of the previous quarter.
Guidance
For the third quarter of 2021, WEX anticipates revenues in the range of $465 million to $480 million, the midpoint ($472.5 million) of which is higher than the current Zacks Consensus Estimate of $467.82 million. Adjusted net income is expected between $2.15 and $2.35 per share, the midpoint ($2.25 per share) of which is higher than the Zacks Consensus estimate of $2.23.
For full-year 2021, revenues are expected between $1.805 billion to $1.835 billion, higher than the current Zacks Consensus Estimate of $1.8 billion. Adjusted net income is expected between $8.3 and $8.7 per share, the midpoint ($8.5 per share) of which is higher than the Zacks Consensus estimate of $8.39.
Currently, WEX carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.
Performance of Some Other Business Services Companies
Equifax (EFX - Free Report) reported better-than-expected second-quarter 2021 results. Adjusted earnings of $1.98 per share beat the Zacks Consensus Estimate by 15.8% and improved 23.8% on a year-over-year basis. Revenues of $1.23 billion outpaced the consensus estimate by 6.4% and improved 25.6% year over year.
IHS Markit’s second-quarter fiscal 2021 adjusted earnings per share of 81 cents beat the consensus mark by 1.3% and increased 17.4% on a year-over-year basis. Total revenues came in at $1.2 billion, surpassing the consensus mark by 3.8% and increasing 15% from the year-ago quarter.
Omnicom (OMC - Free Report) reported second-quarter 2021 adjusted earnings of $1.46 per share that beat the consensus mark by 9.8% and increased 58.7% year over year. Total revenues of $3.6 billion surpassed the consensus estimate by 6.7% and increased 27.5% year over year.
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WEX Inc. (WEX - Free Report) delivered better-than-expected second-quarter 2021 results.
Adjusted earnings of $2.31 per share surpassed the Zacks Consensus Estimate by 16.1 and increased 91% year over year. Total revenues of $459.5 million surpassed the consensus mark by 5.1% and increased 32% year over year.
Notably, WEX’s shares have rallied 22.9% in the past year compared with 6.4% growth of the industry it belongs to.
Revenues by Segment
Fleet Solutions revenues were up 34% year over year to $274.4 million. Travel and Corporate Solutions revenues of $81.8 million were up 50% year over year. Health and Employee Benefit Solutions revenues of $103.3 million increased 17% year over year.
Key Performance Metrics
Average number of vehicles serviced was 16.2 million, up 7% from the year-ago quarter’s figure. Total fuel transactions processed increased 24% from the year-ago quarter’s tally to 158.7 million. Payment processing transactions were up 26% year over year to 130.1 million. Travel and Corporate Solutions' purchase volume climbed more than 100% year over year to $8.7 billion. Health and Employee Benefit Solutions' average number of Software-as-a-Service accounts in the United States were up 13% to 16.4 million, year over year.
Operating Results
Adjusted operating income was up 67.9% from the prior-year quarter’s figure to $166.9 million. Adjusted operating income margin increased to 36.3% from the year-ago quarter’s level 28.7%.
Balance Sheet
WEX exited the quarter with cash and cash equivalents balance of $425.3 million compared with $561.2 million witnessed at the end of the prior quarter. Long-term debt was $2.9 billion compared with $2.5 billion at the end of the previous quarter.
Guidance
For the third quarter of 2021, WEX anticipates revenues in the range of $465 million to $480 million, the midpoint ($472.5 million) of which is higher than the current Zacks Consensus Estimate of $467.82 million. Adjusted net income is expected between $2.15 and $2.35 per share, the midpoint ($2.25 per share) of which is higher than the Zacks Consensus estimate of $2.23.
For full-year 2021, revenues are expected between $1.805 billion to $1.835 billion, higher than the current Zacks Consensus Estimate of $1.8 billion. Adjusted net income is expected between $8.3 and $8.7 per share, the midpoint ($8.5 per share) of which is higher than the Zacks Consensus estimate of $8.39.
Currently, WEX carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.
Performance of Some Other Business Services Companies
Equifax (EFX - Free Report) reported better-than-expected second-quarter 2021 results. Adjusted earnings of $1.98 per share beat the Zacks Consensus Estimate by 15.8% and improved 23.8% on a year-over-year basis. Revenues of $1.23 billion outpaced the consensus estimate by 6.4% and improved 25.6% year over year.
IHS Markit’s second-quarter fiscal 2021 adjusted earnings per share of 81 cents beat the consensus mark by 1.3% and increased 17.4% on a year-over-year basis. Total revenues came in at $1.2 billion, surpassing the consensus mark by 3.8% and increasing 15% from the year-ago quarter.
Omnicom (OMC - Free Report) reported second-quarter 2021 adjusted earnings of $1.46 per share that beat the consensus mark by 9.8% and increased 58.7% year over year. Total revenues of $3.6 billion surpassed the consensus estimate by 6.7% and increased 27.5% year over year.
Free Report – The Bitcoin Profit Phenomenon
Zacks Investment Research has released a Special Report to help you pursue massive profits from the world’s first and largest decentralized form of money.
No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%.
Zacks predicts another significant surge. Click below for Bitcoin: A Tumultuous Yet Resilient History.
Download Now – Today It’s FREE >>
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