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Here's What Key Metrics Tell Us About Wex (WEX) Q4 Earnings

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Wex (WEX - Free Report) reported $663.3 million in revenue for the quarter ended December 2023, representing a year-over-year increase of 7.2%. EPS of $3.82 for the same period compares to $3.44 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $656.75 million, representing a surprise of +1.00%. The company delivered an EPS surprise of +2.69%, with the consensus EPS estimate being $3.72.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Wex performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Corporate Payments - Purchase volume: $22.80 billion versus $21.90 billion estimated by four analysts on average.
  • Benefits - Purchase volume: $1.51 billion versus the four-analyst average estimate of $1.54 billion.
  • Mobility- Average US fuel price: 3.76 $/gal compared to the 3.78 $/gal average estimate based on four analysts.
  • Mobility - Payment processing transactions: 138.1 million compared to the 140.68 million average estimate based on four analysts.
  • Revenues- Corporate Payments: $135 million versus $130.01 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +22% change.
  • Revenues- Benefits: $178.20 million versus the six-analyst average estimate of $179.29 million. The reported number represents a year-over-year change of +26.6%.
  • Revenues- Mobility: $350.10 million versus the six-analyst average estimate of $348.31 million. The reported number represents a year-over-year change of -4.7%.
  • Revenues- Account servicing: $171.30 million versus the three-analyst average estimate of $170.38 million. The reported number represents a year-over-year change of +11.7%.
  • Revenues- Corporate Payments- Payment processing: $117.40 million versus $110.81 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +19.2% change.
  • Revenues- Finance fees: $80 million compared to the $82.37 million average estimate based on three analysts. The reported number represents a change of -19.9% year over year.
  • Revenues- Mobility- Payment processing: $174.40 million versus the three-analyst average estimate of $173.07 million. The reported number represents a year-over-year change of -1.7%.
  • Revenues- Payment processing: $311.80 million compared to the $299.90 million average estimate based on three analysts. The reported number represents a change of +5.7% year over year.
View all Key Company Metrics for Wex here>>>

Shares of Wex have returned +2.3% over the past month versus the Zacks S&P 500 composite's +6.5% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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