WEX Inc. (WEX - Free Report) delivered mixed fourth-quarter 2023 results wherein earnings missed the Zacks Consensus Estimate while revenues surpassed the mark.
The company’s shares increased 6.9% despite missing the fourth-quarter earning estimate.
Adjusted earnings (excluding $1.16 from non-recurring items) of $3.14 per share missed the Zacks Consensus Estimate by 4.6% but improved 3.3% year over year. Total revenues of $663.3 million outpaced the consensus estimate by 1% and increased 7.2% year over year.
Quarterly Details
Mobility revenues decreased 5% year over year to $350.1 million, missing our estimate of $362 million. Corporate Payments revenues of $135 million were up 22% year over year, which beat our prediction of $123.1 million. Benefits revenues of $178.2 million registered 27% year-over-year growth and surpassed our projection of $167.8 million.
Total volume across the company was $56 billion, up 6% year over year. The average number of vehicles serviced was around 19.3 million, up 3% from a year ago. Mobility payment processing transactions were down 1% year over year to $138.1 million.
Corporate Payments purchase volume jumped 33% year over year to $22.8 billion. Benefits average number of Software-as-a-Service accounts was up 7% to 19.9 million year over year.
Adjusted operating income climbed 10.3% to $262.5 million from the year-ago quarter’s figure. The adjusted operating income margin was 39.6%, up 110 basis points year over year.
Balance Sheet
WEX exited the quarter with a cash and cash equivalent balance of $975.8 million compared with $957.8 million at the prior-quarter end. Long-term debt was $2.83 billion compared with $2.65 billion at the end of the previous quarter.
The company generated $761.9 million from operating activities and spent $41.9 million on capital expenditures. It generated $125.3 million in the fourth quarter.
Guidance
For the first quarter of 2024, revenues are expected to range between $650 million and $660 million. The Zacks Consensus Estimate of revenues is pegged at $654.13 million, lower than the midpoint ($655 million) of the guided range. Adjusted net income is projected between $144 million and $148 million, or $3.40 per share to $3.50 per share. The consensus estimate of earnings is pegged at $3.51 per share, higher than the guided range.
For the full year 2024, revenues are forecasted to be in the range of $2.70 billion to $2.74 billion. The Zacks Consensus Estimate of revenues is pegged at $2.73 billion, lower than the midpoint ($2.72 billion) of the guided range. Adjusted net income anticipated between $679 million and $700 million, or $15.90 per share to $16.40 per share. The consensus estimate of earnings is pegged at $16.25 per share, higher than the midpoint ($16.15) of the guided range.
Earnings Snapshot of Some Business Services Stocks
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive second-quarter fiscal 2024 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate.
Adjusted earnings per share (EPS) of $2.13 beat the consensus estimate by 1.4% and grew 8.7% from the year-ago fiscal quarter’s figure.
Total revenues of $4.67 billion surpassed the consensus estimate by 0.2% and improved 6.3% from the year-ago fiscal quarter’s reading on a reported basis as well on an organic constant-currency basis.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported better-than-expected third-quarter fiscal 2024 results.
Quarterly adjusted EPS of $1.41 surpassed the Zacks Consensus Estimate by 24.8% and exceeded the year-ago quarter by 31.8%. The company reported revenues of $2.57 billion, which beat the consensus estimate by 1.5% and increased 12.9% year over year. Revenues, excluding billable expenses, were $1.77 billion, up 13% year over year.
Waste Management Inc. (WM - Free Report) reported impressive fourth-quarter 2023 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate.
Adjusted EPS of $1.74 surpassed the Zacks Consensus Estimate by 13.7% and improved 33.9% year over year. Total revenues of $5.2 billion beat the consensus estimate by a slight margin and increased 5.7% year over year.
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WEX Inc. (WEX - Free Report) delivered mixed fourth-quarter 2023 results wherein earnings missed the Zacks Consensus Estimate while revenues surpassed the mark.
The company’s shares increased 6.9% despite missing the fourth-quarter earning estimate.
Adjusted earnings (excluding $1.16 from non-recurring items) of $3.14 per share missed the Zacks Consensus Estimate by 4.6% but improved 3.3% year over year. Total revenues of $663.3 million outpaced the consensus estimate by 1% and increased 7.2% year over year.
Quarterly Details
Mobility revenues decreased 5% year over year to $350.1 million, missing our estimate of $362 million. Corporate Payments revenues of $135 million were up 22% year over year, which beat our prediction of $123.1 million. Benefits revenues of $178.2 million registered 27% year-over-year growth and surpassed our projection of $167.8 million.
Total volume across the company was $56 billion, up 6% year over year. The average number of vehicles serviced was around 19.3 million, up 3% from a year ago. Mobility payment processing transactions were down 1% year over year to $138.1 million.
Corporate Payments purchase volume jumped 33% year over year to $22.8 billion. Benefits average number of Software-as-a-Service accounts was up 7% to 19.9 million year over year.
Adjusted operating income climbed 10.3% to $262.5 million from the year-ago quarter’s figure. The adjusted operating income margin was 39.6%, up 110 basis points year over year.
Balance Sheet
WEX exited the quarter with a cash and cash equivalent balance of $975.8 million compared with $957.8 million at the prior-quarter end. Long-term debt was $2.83 billion compared with $2.65 billion at the end of the previous quarter.
The company generated $761.9 million from operating activities and spent $41.9 million on capital expenditures. It generated $125.3 million in the fourth quarter.
Guidance
For the first quarter of 2024, revenues are expected to range between $650 million and $660 million. The Zacks Consensus Estimate of revenues is pegged at $654.13 million, lower than the midpoint ($655 million) of the guided range. Adjusted net income is projected between $144 million and $148 million, or $3.40 per share to $3.50 per share. The consensus estimate of earnings is pegged at $3.51 per share, higher than the guided range.
For the full year 2024, revenues are forecasted to be in the range of $2.70 billion to $2.74 billion. The Zacks Consensus Estimate of revenues is pegged at $2.73 billion, lower than the midpoint ($2.72 billion) of the guided range. Adjusted net income anticipated between $679 million and $700 million, or $15.90 per share to $16.40 per share. The consensus estimate of earnings is pegged at $16.25 per share, higher than the midpoint ($16.15) of the guided range.
Earnings Snapshot of Some Business Services Stocks
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive second-quarter fiscal 2024 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate.
Adjusted earnings per share (EPS) of $2.13 beat the consensus estimate by 1.4% and grew 8.7% from the year-ago fiscal quarter’s figure.
Total revenues of $4.67 billion surpassed the consensus estimate by 0.2% and improved 6.3% from the year-ago fiscal quarter’s reading on a reported basis as well on an organic constant-currency basis.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported better-than-expected third-quarter fiscal 2024 results.
Quarterly adjusted EPS of $1.41 surpassed the Zacks Consensus Estimate by 24.8% and exceeded the year-ago quarter by 31.8%. The company reported revenues of $2.57 billion, which beat the consensus estimate by 1.5% and increased 12.9% year over year. Revenues, excluding billable expenses, were $1.77 billion, up 13% year over year.
Waste Management Inc. (WM - Free Report) reported impressive fourth-quarter 2023 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate.
Adjusted EPS of $1.74 surpassed the Zacks Consensus Estimate by 13.7% and improved 33.9% year over year. Total revenues of $5.2 billion beat the consensus estimate by a slight margin and increased 5.7% year over year.
Zacks Names #1 Semiconductor Stock
It'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 >>
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