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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.
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's Stock Gains 6.9% Despite Missing Q4 Earnings Estimates
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.
WEX Inc. Price, Consensus and EPS Surprise
WEX Inc. price-consensus-eps-surprise-chart | WEX Inc. Quote
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.