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WEX Stock Rallies 6.5% Since Q2 Earnings & Revenue Beat
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Key Takeaways
Q2 EPS rose 1% to $3.95, beating estimates by 7.1%; revenues fell 2% to $659.6M but topped consensus.
Benefits revenues jumped 45.5% to $195.1M, offsetting Mobility and Payments segment declines.
WEX raised 2025 EPS guidance to $15.37-$15.77 and expects Q3 EPS of $4.30-$4.50.
WEX Inc. (WEX - Free Report) reported impressive second-quarter 2025 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
The better-than-expected results had a notable impact on the market as the company’s shares have rallied 6.5% since the earnings release on July 23.
Quarterly adjusted earnings of $3.95 per share surpassed the Zacks Consensus Estimate by 7.1% and increased 1.02% from the year-ago quarter. Revenues of $659.6 million beat the consensus estimate by 0.9% but declined 2.06% on a year-over-year basis.
The stock has gained 43.3% over the past 90 days, outperforming the 3.1% growth of the industry and the 14.3% rise of the Zacks S&P 500 composite.
Image Source: Zacks Investment Research
Segmental Revenues of WEX
The Mobility segment’s revenues decreased 3.7% from the year-ago quarter to $346.2 million, missing our estimate of $354.4 million. The Corporate Payments segment’s revenues were $118.3 million, down 34.2% from the second quarter of 2024, and missed our estimate of $119 million.
The Benefits segment’s revenues increased 45.5% year over year to $195.1 million, beating our estimate of $185.5 million.
WEX’s Operating Results
Adjusted operating income declined 11.3% to $243 million from the year-ago quarter but beat our estimate of $223.2 million. The adjusted operating income margin of 36.8% outpaced our estimate of 33.9% but declined 390 basis points year over year.
Balance Sheet & Cash Flow of WEX
WEX exited the quarter with cash and cash equivalents of $772.6 million compared with $595.8 million in the December-end quarter of 2024. The long-term debt was $3.9 billion compared with $595.8 million in the December-end quarter of 2024.
The company used $264.6 million in cash from operating activities in the quarter. The adjusted free cash flow was $194.3 million. Capital expenditure totaled $34.6 million.
WEX’s Q3 & 2025 Guidance
For the third quarter of 2025, revenues are expected between $669 million and $689 million. The midpoint ($679 million) of the guided range is approximately in line with the current Zacks Consensus Estimate of $679.47 million. Adjusted net income is now expected between $4.30 and $4.50 per share. The Zacks Consensus Estimate for the same is pegged at $4.15.
For 2025, revenues are expected between $2.61 billion and $2.65 billion. The midpoint ($2.63 billion) of the guided range is in line with the current Zacks Consensus Estimate. Adjusted net income is now expected between $15.37 and $15.77 per share. The Zacks Consensus Estimate for the same stands at $15.13.
Fiserv, Inc. (FI - Free Report) reported mixed second-quarter 2025 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed the same.
FI’s adjusted earnings per share of $2.47 topped the consensus mark by 2.5% and rose 16% year over year. Adjusted revenues of $5.2 billion missed the consensus estimate by a slight margin but gained 1.7% on a year-over-year basis.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported impressive second-quarter 2025 results. Both earnings and revenues beat the Zacks Consensus Estimate.
IPG’s adjusted earnings of 75 cents per share surpassed the Zacks Consensus Estimate by 36.4% and jumped 23% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2.2 billion beat the consensus estimate by a slight margin but declined 19.8% year over year. Total revenues of $2.5 billion decreased 7.2% year over year but outpaced the Zacks Consensus Estimate of $2.2 billion.
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WEX Stock Rallies 6.5% Since Q2 Earnings & Revenue Beat
Key Takeaways
WEX Inc. (WEX - Free Report) reported impressive second-quarter 2025 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
The better-than-expected results had a notable impact on the market as the company’s shares have rallied 6.5% since the earnings release on July 23.
Quarterly adjusted earnings of $3.95 per share surpassed the Zacks Consensus Estimate by 7.1% and increased 1.02% from the year-ago quarter. Revenues of $659.6 million beat the consensus estimate by 0.9% but declined 2.06% on a year-over-year basis.
WEX Inc. Price, Consensus and EPS Surprise
WEX Inc. price-consensus-eps-surprise-chart | WEX Inc. Quote
The stock has gained 43.3% over the past 90 days, outperforming the 3.1% growth of the industry and the 14.3% rise of the Zacks S&P 500 composite.
Image Source: Zacks Investment Research
Segmental Revenues of WEX
The Mobility segment’s revenues decreased 3.7% from the year-ago quarter to $346.2 million, missing our estimate of $354.4 million. The Corporate Payments segment’s revenues were $118.3 million, down 34.2% from the second quarter of 2024, and missed our estimate of $119 million.
The Benefits segment’s revenues increased 45.5% year over year to $195.1 million, beating our estimate of $185.5 million.
WEX’s Operating Results
Adjusted operating income declined 11.3% to $243 million from the year-ago quarter but beat our estimate of $223.2 million. The adjusted operating income margin of 36.8% outpaced our estimate of 33.9% but declined 390 basis points year over year.
Balance Sheet & Cash Flow of WEX
WEX exited the quarter with cash and cash equivalents of $772.6 million compared with $595.8 million in the December-end quarter of 2024. The long-term debt was $3.9 billion compared with $595.8 million in the December-end quarter of 2024.
The company used $264.6 million in cash from operating activities in the quarter. The adjusted free cash flow was $194.3 million. Capital expenditure totaled $34.6 million.
WEX’s Q3 & 2025 Guidance
For the third quarter of 2025, revenues are expected between $669 million and $689 million. The midpoint ($679 million) of the guided range is approximately in line with the current Zacks Consensus Estimate of $679.47 million. Adjusted net income is now expected between $4.30 and $4.50 per share. The Zacks Consensus Estimate for the same is pegged at $4.15.
For 2025, revenues are expected between $2.61 billion and $2.65 billion. The midpoint ($2.63 billion) of the guided range is in line with the current Zacks Consensus Estimate. Adjusted net income is now expected between $15.37 and $15.77 per share. The Zacks Consensus Estimate for the same stands at $15.13.
Currently, WEX carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Fiserv, Inc. (FI - Free Report) reported mixed second-quarter 2025 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed the same.
FI’s adjusted earnings per share of $2.47 topped the consensus mark by 2.5% and rose 16% year over year. Adjusted revenues of $5.2 billion missed the consensus estimate by a slight margin but gained 1.7% on a year-over-year basis.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported impressive second-quarter 2025 results. Both earnings and revenues beat the Zacks Consensus Estimate.
IPG’s adjusted earnings of 75 cents per share surpassed the Zacks Consensus Estimate by 36.4% and jumped 23% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2.2 billion beat the consensus estimate by a slight margin but declined 19.8% year over year. Total revenues of $2.5 billion decreased 7.2% year over year but outpaced the Zacks Consensus Estimate of $2.2 billion.