We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
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.
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.
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.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
WEX's Q2 Earnings and Revenues Beat Estimates, Increase Y/Y
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.
WEX Inc. Price
WEX Inc. price | WEX Inc. Quote
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.