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WEX Q1 Earnings and Revenues Beat Estimates, Increase Y/Y

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WEX Inc. (WEX - Free Report) delivered better-than-expected first-quarter 2023 results.

Adjusted earnings of $3.31 per share surpassed the Zacks Consensus Estimate by 3.4% and our estimate by 3.8%. The bottom line increased 14.9% year over year.

Total revenues of $612 million surpassed the consensus mark by 1.5% and our estimate by 1.7%. The top line increased 18.3% year over year, mainly driven by the positive impact of fuel prices and spreads.

WEX shares have gained 4.2% in the past year against the 3.1% decline of the industry it belongs to.

WEX Inc. Price, Consensus and EPS Surprise

Mobility revenues were up 7% year over year to $342.3 million. Corporate Payments revenues of $104.8 million were up 36% year over year. Benefits revenues of $164.9 million registered 36% year-over-year growth.

Total volume across the company came in at $52.3 billion, up 17% year over year. The average number of vehicles serviced was around 18.7 million, up 9% from the year-ago quarter’s figure. Mobility payment processing transactions were up 4% year over year to 137.5 million.

Corporate Payments purchase volume surged 58% year over year to $18.6 billion. Benefits average number of Software-as-a-Service accounts were up 14% to 20.3 million year over year.

Adjusted operating income increased 13.4% to $230.1 million from the year-ago quarter’s $202.9 million. The adjusted operating income margin was 37.6%, down 160 basis points year over year.

Balance Sheet

WEX exited the quarter with a cash and cash equivalents balance of $921.7 million compared with $922 million witnessed at the end of the prior quarter. Long-term debt was $2.6 billion compared with $2.5 billion at the end of the previous quarter.


For the second quarter of 2023, WEX anticipates revenues in the range of $613-$623 million, higher than the current Zacks Consensus Estimate of $609.42 million. Adjusted net income is expected between $3.45 and $3.55 per share. The midpoint of the guided range is the same as the Zacks Consensus Estimate of $3.50.

For 2023, revenues are now expected between $2.45 billion and $2.49 billion compared with the previous expectation of $2.43-$2.47 billion. The midpoint of the guided range is the same as the current Zacks Consensus Estimate of $2.47 billion.

Adjusted net income is now expected between $13.85 and $14.25 per share compared with the prior expectation of $13.55 and $14.05 per share. The raised range is above the Zacks Consensus Estimate of $13.79.

Currently, WEX carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Recent Earnings Snapshots of Some Service Providers

Omnicom (OMC - Free Report) reported better-than-expected first-quarter 2023 results.

OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimate by 11.4%. EPS increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.

Equifax (EFX - Free Report)  also reported a beat on both counts in its first-quarter 2023 results.

EFX’s adjusted earnings came in at $1.43, beating the consensus mark by 4.4% but declining 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% year over year.

ManpowerGroup (MAN - Free Report) reported lower-than-expected first-quarter 2023 results.

MAN’s adjusted earnings of $1.61 per share lagged the consensus mark by 0.6% but matched our estimate. Revenues of $4.8 billion missed the consensus mark by 1.3% and our estimate by a slight margin. The top line decreased 7.6% year over year.

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