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WEX's Q1 Earnings and Revenues Surpass Estimates, Up Y/Y

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WEX Inc. (WEX - Free Report) delivered better-than-expected fourth-quarter 2021 results.

Adjusted earnings of $2.88 per share surpassed the Zacks Consensus Estimate by 6.3% and increased 61% year over year. Total revenues of $517.5 million surpassed the consensus mark by 2% and increased 26% year over year.

WEX’s shares have lost 21.7% in the past year compared with 30.4% decline of the industry it belongs to.

Quarter Details

Fleet Solutions’ revenues were up 31% year over year to $319.1 million. Travel and Corporate Solutions’ revenues of $77.3 million were up 9% year over year. Health and Employee Benefit Solutions revenues of $121.1 million registered 26% year-over-year growth.

Total volume across the company came in at $44.8 billion, up 50% year over year. Average number of vehicles serviced was 17.2 million, up 9% from the year-ago quarter’s figure. Fleet Solutions segment payment processing transactions were up 12% year over year to 132.7 million.

Travel and Corporate Solutions' purchase volume climbed 93% year over year to $11.8 billion. Health and Employee Benefit Solutions' average number of Software-as-a-Service accounts in the United States were up 15% to 17.8 million year over year.

Adjusted operating income increased to 45.3% from the year-ago quarter’s 139.6 million. Adjusted operating income margin was 39.2% compared with 34% in the year-ago quarter.

Balance Sheet

WEX exited the quarter with cash and cash equivalents balance of $577.5 million compared with $588.9 million witnessed at the end of the prior quarter. Long-term debt was $2.8 billion compared with $2.7 billion at the end of the previous quarter.

WEX Inc. Price, Consensus and EPS Surprise WEX Inc. Price, Consensus and EPS Surprise

WEX Inc. price-consensus-eps-surprise-chart | WEX Inc. Quote

Guidance

For the second quarter of 2022, WEX anticipates revenues in the range of $555 million to $565 million, the midpoint ($560 million) of which is higher than the current Zacks Consensus Estimate of $532.29 million. Adjusted net income is expected between $3.35 and $3.45 per share, higher than the Zacks Consensus estimate of $2.87.

For full-year 2022, revenues are expected between $2.155 billion and $2.195 billion, lower than the current Zacks Consensus Estimate of $2.87 billion. Adjusted net income is expected between $12.4 and $12.8 per share, higher than the Zacks Consensus estimate of $11.81.

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

Within the broader Business Services sector, ManpowerGroup Inc. (MAN - Free Report) , Omnicom Group Inc. (OMC - Free Report) and Equifax Inc. (EFX - Free Report) recently reported first-quarter 2022 results.

ManpowerGroup’s quarterly results beat earnings and revenue estimates. Adjusted earnings of $1.88 per share beat the consensus mark by 20.5% and improved 69.4% year over year.

MAN’s revenues of $5.14 billion surpassed the consensus mark by 0.7% and inched up 4.5% year over year.

Omnicom reported earnings of $1.39 per share that beat the consensus mark by 8.6% and increased 4.5% year over year.

OMC’s total revenues of $3.4 billion surpassed the consensus estimate by 5.4% but declined slightly year over year.

Equifax adjusted earnings of $2.22 per share that beat the consensus estimate by 3.3% and improved 13% on a year-over-year basis. 

EFX’s revenues of $1.36 billion outpaced the consensus estimate by 2.4% and improved 12.4% year over year.