WEX Inc. (NYSE: WEX ) is a global payments processor, which specializes in providing payment solutions for businesses, including fleet cards, employee benefits and payments to other businesses. The company has grown its revenue at a 14% CAGR over the past 10 An individual investor primarily focused on undercovered companies, with more than 50 companies on my watchlist. My areas include technology, software, electronics and the energy transition. I have been investing my personal capital for over 7 years in ...

80% of Global Commercial Fleet Leaders Surveyed Set Goal for 25% EVs by 2030, Latest Frost & Sullivan Insights Reveal LONDON, Sept. 18, 2024 /PRNewswire/ -- Conducted by Frost & Sullivan and commissioned by WEX (NYSE: WEX), a new report provides key insights for organisations managing mixed-energy fleets across Europe, North America, and Asia-Pacific. The study underscores the rapid progress in fleet electrification. While EV adoption rates vary by business and fleet type, most fleet managers expect a signi ...

WEX Inc. (WEX) stock has had an impressive run over the past three months. Shares of the company have gained 11.1% compared with the 6.1% growth of the industry it belongs to and the marginal rise of the Zacks S&P 500 composite. The company's revenues for 2024 are expected to improve 6% year over year, and for 2025, it is anticipated to increase 6.4% year over year. Earnings are anticipated to increase 9.2% in 2024 and 12.9% in 2025. The company has an expected long-term (three to five years) earnings per s ...

WEX celebrates World EV Day by welcoming Blink Charging and another brand to its expanding EV Network in the US. These new additions bring WEX's total network to approximately 130,000 public chargers nationwide. Bowie, Maryland, Sept. 09, 2024 (GLOBE NEWSWIRE) -- Blink Charging Co. (NASDAQ: BLNK), a leading global manufacturer, owner, operator, and provider of electric vehicle (EV) charging equipment and services, announces its collaboration with WEX to enhance the integration of EV charging into mixed ener ...

WEX Inc. (WEX) reported mixed second-quarter 2024 results, wherein earnings beat the Zacks Consensus Estimates, while revenues missed the same. The stock declined 1.7% since the release of results on Jul 25 on weak 2024 earnings and revenue guidance. WEX expects adjusted diluted earnings per share of $15.98-$16.38 compared with the $16.10-$16.60 provided in the preceding quarter. The mid-point ($16.18) of the same is higher than the consensus estimate for earnings of $16.16 per share. The company expects re ...

Financial Performance - Total revenues for Q2 2024 were $673.5 million, a 8.4% increase from $621.3 million in Q2 2023[168] - Net income for Q2 2024 was $77.0 million, down from $95.3 million in Q2 2023, representing a decrease of 19.2%[168] - Adjusted net income for Q2 2024 was $164.0 million, compared to $159.3 million in Q2 2023, an increase of 2.2%[168] - Total volume across the company reached $60.1 billion in Q2 2024, up from $55.3 billion in Q2 2023, marking an increase of 6.5%[168] - Operating income for Q2 2024 was $32.5 million, a 10% increase from $29.5 million in Q2 2023, while segment adjusted operating income increased by 20% to $71.1 million[193] - Total segment adjusted operating income for Q2 2024 was $299.9 million, compared to $275.9 million in Q2 2023, reflecting a year-over-year increase of 8.9%[212] - Operating income for the first half of 2024 was $332.6 million, up from $313.7 million in the same period of 2023, indicating a growth of 6.0%[212] Revenue Segments - Mobility segment revenues increased by $19.4 million in Q2 2024, totaling $359.6 million, a 6% increase from $340.2 million in Q2 2023[171] - Total revenues for Corporate Payments increased by $12.2 million for the second quarter of 2024 and $29.9 million for the first half of 2024, primarily due to volume growth in travel and corporate payments[185] - Purchase volume for Corporate Payments reached $25,756.2 million for the second quarter of 2024, an increase of 12% compared to the prior year[184] - Payment processing revenue rose to $24.9 million in Q2 2024, a 6% increase from $23.6 million in Q2 2023, and total revenues for the first half of 2024 reached $371.0 million, up 14% from $324.1 million in the prior year[191] Expenses and Costs - Sales and marketing expenses rose by $10.3 million for the second quarter of 2024 and $15.3 million for the first half of 2024, driven by increased employee costs from the Payzer Acquisition[183] - Processing costs increased by $13.9 million for the first half of 2024, primarily due to higher headcount in technology departments[178] - Processing costs increased by $10.4 million (18%) in Q2 2024 and by $21.2 million (18%) for the first half of 2024, primarily due to higher employee costs from the Ascensus acquisition[195] - General and administrative expenses decreased by $5.6 million and $7.3 million for the three and six months ended June 30, 2024, respectively, compared to the prior year[189] - General and administrative expenses decreased by $3.9 million (25%) in Q2 2024 compared to the prior year, attributed to reduced professional services expenses[197] - Depreciation and amortization increased by $3.6 million and $6.5 million for the three and six months ended June 30, 2024, due to increased capital expenditures and amortization from the Payzer Acquisition[182] - Depreciation and amortization expenses rose by $4.5 million (27%) in Q2 2024, primarily due to the amortization of intangible assets from the Ascensus acquisition[199] Cash Flow and Liquidity - Adjusted free cash flow for Q2 2024 was $(43.4) million, a decrease from $130.9 million in Q2 2023[168] - The company reported an adjusted free cash flow of $(43.4) million for the six months ended June 30, 2024, compared to $130.9 million in the same period of 2023[214] - Cash provided by operating activities decreased by $259.8 million year-over-year for the six months ended June 30, 2024, primarily due to increased customer receivables[223] - Cash used for investing activities decreased by $919.7 million compared to the prior year, primarily due to a reduction in investments in available-for-sale debt securities[224] - Cash provided by financing activities decreased by $1,321.8 million, driven by a decrease in net deposits and BTFP borrowing activity[226] - The Company repurchased approximately 0.8 million shares of common stock for a total of $173.6 million during the six months ended June 30, 2024[227] - Adjusted free cash flow decreased by $174.3 million during the six months ended June 30, 2024, primarily due to the decrease in cash provided by operating activities[228] Debt and Borrowing - The Company had outstanding term loan principal borrowings of $2,283.9 million and borrowings of $756.3 million on the Revolving Credit Facility as of June 30, 2024[218] - The company had remaining borrowing availability of $804.4 million under its Revolving Credit Facility as of June 30, 2024[215] - WEX Bank accessed $760.0 million of temporary capital under the BTFP, pledging investment securities with a par value of $790.6 million as collateral[219] - The Amended and Restated Credit Agreement allows the Company to borrow up to a maximum of $141.6 million from the Federal Reserve Bank Discount Window, with no outstanding borrowings as of June 30, 2024[220] Tax and Regulatory - The effective tax rate increased to 27.5% for Q2 2024, up from 19.1% in Q2 2023, reflecting higher effective tax rates[204] - The company plans to utilize a fixed annual projected long-term non-GAAP tax rate starting in fiscal year 2024 to enhance consistency across reporting periods[208] Foreign Currency and Other - Net foreign currency loss for Q2 2024 was $0.4 million, compared to a loss of $0.2 million in Q2 2023[210]

Core Insights - The company is focusing on commercial electric vehicle (EV) solutions and artificial intelligence (AI) applications to enhance customer value and improve its business model [1][5] - WEX reported a record-high revenue of $673.5 million for the second quarter, reflecting an 8% year-over-year increase [4] - Revenue growth was observed across all three segments: mobility increased by 5.7%, corporate payments by 10.0%, and benefits by 12.9% [2] Technology and Innovation - Enhanced AI tools have contributed to efficiency gains, particularly in managing credit losses and identifying abnormal behaviors that may indicate potential loss events [1] - The company is expanding its commercial EV solutions, currently offering public and home charging solutions, with plans to introduce captive charging solutions in 2024 [6] - The tech-forward approach aims to transform customer experiences, particularly in customer service operations and risk functions, supporting profitability in both the short and long term [7] Market Position and Strategy - WEX aims to solidify its market leadership by providing innovative solutions that meet customer needs in a mixed fleet environment [3][4] - The company believes that most customers will operate in a mixed fleet world, leveraging strengths in both fuel and EV solutions to enhance operational efficiency [4] - WEX is committed to its growth strategy, focusing on operational efficiency targets that drive commercial reinvestment and margin expansion [7]

Wex (WEX) reported $673.5 million in revenue for the quarter ended June 2024, representing a year-over-year increase of 8.4%. EPS of $3.91 for the same period compares to $3.63 a year ago. 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. Here is how Wex performed in the just repo ...

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $4.45 on $704.19 million in revenues for the coming quarter and $16.23 on $2.74 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial Transaction Services is currently in t ...

Revenue and Income - Q2 2024 revenue increased 8% year-over-year to a record $673 million, driven by 13% growth in the Benefits segment and acceleration in Mobility segment growth rate [2]. - Q2 GAAP net income was $77 million, or $1.83 per diluted share, a decrease from $95.3 million, or $2.20 per diluted share, in Q2 2023 [6]. - Adjusted net income for Q2 2024 was $164 million, or $3.91 per diluted share, up 8% from $159.3 million, or $3.63 per diluted share, in the same period last year [6]. - Total revenues for Q2 2024 reached $673.5 million, a 8.4% increase from $621.3 million in Q2 2023 [21]. - Payment processing revenue increased to $318.4 million, up 5.9% from $300.5 million year-over-year [21]. - Net income for Q2 2024 was $77.0 million, a decrease of 19.1% compared to $95.3 million in Q2 2023 [21]. - Adjusted net income for Q2 2024 was $164.0 million, or $3.91 per diluted share, compared to $159.3 million, or $3.63 per diluted share in Q2 2023 [27]. Cash Flow and Assets - Cash flows from operating activities for the first half of 2024 were negative at $(160.3) million, compared to positive cash flows of $99.5 million in the same period of 2023 [25]. - Total assets as of June 30, 2024, were $14,246.9 million, an increase from $13,882.1 million at the end of 2023 [23]. - Total liabilities increased to $12,463.3 million from $12,061.5 million at the end of 2023 [23]. - The company reported a decrease in cash and cash equivalents to $682.6 million from $975.8 million at the end of 2023 [23]. - Adjusted free cash flow for the three months ended June 30, 2024, was $161.1 million, compared to $192.3 million in 2023 [35]. - Operating cash flow for the six months ended June 30, 2024, was reported at $(160.3) million, a decrease from $99.5 million in 2023 [35]. Segment Performance - Corporate Payments' purchase volume grew 12% to $25.8 billion from $22.9 billion in Q2 2023 [7]. - Mobility segment payment processing revenue for Q2 2024 was $177.2 million, a 3% increase from $172.2 million in Q2 2023 [44]. - Corporate Payments segment payment processing revenue increased by 11% to $116.2 million in Q2 2024 from $104.7 million in Q2 2023 [44]. - Benefits segment total revenues reached $179.8 million in Q2 2024, reflecting a 13% increase compared to $159.2 million in Q2 2023 [44]. - Total segment adjusted operating income for Q2 2024 was $299.9 million, up from $275.9 million in Q2 2023, with a margin of 44.5% [45]. - Adjusted operating income for the Mobility segment was $154.3 million in Q2 2024, with a margin of 42.9% [45]. Future Outlook - For Q3 2024, the company expects revenue in the range of $688 million to $698 million and adjusted net income in the range of $4.42 to $4.52 per diluted share [15]. - For the full year 2024, revenue is expected to be in the range of $2.68 billion to $2.72 billion, with adjusted net income expected to be between $15.98 and $16.38 per diluted share [15]. - The company plans to continue investing in new technologies and market expansion strategies to drive future growth [21]. - The company achieved $100 million of run rate savings six months earlier than expected and continues to invest in EV offerings and digital transformation [4]. Shareholder Actions - The company repurchased approximately $100 million worth of shares in Q2 and plans to enter into a $300 million accelerated share repurchase agreement [4]. - The weighted average diluted shares outstanding decreased to 42.0 million in Q2 2024 from 43.4 million in Q2 2023 [21]. Operating Metrics - For the three months ended June 30, 2024, the operating income was $168.1 million with a margin of 25.0%, compared to $159.4 million and a margin of 25.7% in 2023 [28]. - Total segment adjusted operating income for the same period was $299.9 million, representing a margin of 44.5%, up from $275.9 million and a margin of 44.4% in 2023 [28]. - Adjusted operating income for the six months ended June 30, 2024, was $525.2 million, with a margin of 39.6%, compared to $480.7 million and a margin of 39.0% in 2023 [28]. Market Conditions - The impact of foreign exchange (FX) on reported revenue for the six months ended June 30, 2024, was favorable by $0.1 million [36]. - The price per gallon of fuel (PPG) positively impacted revenue by $25.9 million for the six months ended June 30, 2024 [37]. - The estimated adjusted net income impact from FX for the six months ended June 30, 2024, was $0.4 million, while the PPG impact was $17.9 million [38]. - The average US fuel price was $3.62 per gallon in Q2 2024, up from $3.56 in Q1 2024 [40].