Q4 2024 Earnings February 6, 2025 | | | --- | | a o o o o o o o o o o o o o o o | | 0 0 | | 000000000000000000000000 | | 0 0 0 | | 0 0 0 | | .. | | . | | . | | .. | | 0 | | .. | | 0 | | 0 | | 00 | | 0 | | . | | . | | . COL | | . | | . | | 0 0 0 | | .. | | 0 | | 9 | | 900000000000 | | | Forward-Looking Statements These materials include forward-looking statements including, but not limited to, statements about management's plans, goals, expectations, and guidance and assumptions with respect to future financ ...

Core Insights - Wex reported revenue of $636.5 million for the quarter ended December 2024, a decrease of 4% year-over-year, with EPS at $3.57 compared to $3.82 in the same quarter last year, indicating a slight surprise over consensus estimates [1] - The company’s revenue exceeded the Zacks Consensus Estimate by 0.70%, while EPS also surpassed expectations by 0.85% [1] Financial Performance Metrics - Mobility payment processing transactions reached 138.5 million, slightly above the average estimate of 137.58 million [4] - Corporate Payments purchase volume was $16.54 billion, significantly below the estimated $19.54 billion, reflecting a notable decline [4] - Benefits purchase volume was $1.62 billion, slightly above the average estimate of $1.61 billion [4] - Average US fuel price was reported at $3.25 per gallon, marginally lower than the estimated $3.27 per gallon [4] Revenue Breakdown - Corporate Payments revenue was $104.30 million, down 22.7% year-over-year and below the estimated $115.42 million [4] - Benefits revenue was $186.90 million, exceeding the estimate of $184.52 million, with a year-over-year increase of 4.9% [4] - Mobility revenue was $345.20 million, slightly above the estimate of $331.94 million, but down 1.4% year-over-year [4] - Payment processing revenue was $270.20 million, below the estimate of $278.26 million, reflecting a year-over-year decline of 13.3% [4] - Other revenues were reported at $112.60 million, exceeding the estimate of $105.11 million, with a year-over-year increase of 12.4% [4] Stock Performance - Wex shares have returned +3.9% over the past month, outperforming the Zacks S&P 500 composite, which saw a +1.7% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3]

Wex (WEX) came out with quarterly earnings of $3.57 per share, beating the Zacks Consensus Estimate of $3.54 per share. This compares to earnings of $3.82 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 0.85%. A quarter ago, it was expected that this provider of fuel payment processing for fleet vehicles would post earnings of $4.42 per share when it actually produced earnings of $4.35, delivering a surprise of -1.58%.Over the ...

Revenue Performance - Total revenue for Q4 2024 decreased by $26.8 million compared to Q4 2023, primarily due to a net $26.6 million unfavorable impact from fuel prices and spreads, and a $1.3 million unfavorable impact from foreign exchange rates [7]. - For the twelve months ended December 31, 2024, total revenue reached $2,628.1 million, reflecting an 8.4% year-over-year increase [8]. - Mobility segment revenue for Q4 2024 decreased 1.4% year-over-year, impacted by a 7.6% drag from lower fuel prices, resulting in a revenue reduction of approximately $27 million [14]. - Benefits revenue for Q4 2024 was $186.9 million, a 4.9% increase year-over-year, driven by strong growth in the HSA business [18]. - Total revenues for the three months ended December 31, 2023, were $178.2 million, reflecting a year-over-year change of 26.7% [19]. - Total purchase volume for the twelve months ended December 31, 2024, is expected to reach $7,243 million, with a year-over-year change of 8.8% [19]. - The Corporate Payments segment reported total revenues of $135.0 million for the three months ended December 31, 2023, down 22.7% year-over-year [25]. Segment Contributions - The Mobility segment generated $1,400.8 million in revenue for the twelve months ended December 31, 2024, accounting for 53% of total revenue [10]. - The Benefits segment contributed $739.5 million in revenue, representing 28% of total revenue for the same period [10]. - The net interchange rate in the Mobility segment improved to 1.36%, up 10 basis points from the same quarter of 2023, reflecting favorable merchant contract renewals [14]. - Benefits purchase volume increased by 7.1% compared to the prior-year quarter, generating a steady interchange rate of 130 to 140 basis points [18]. - The net interchange rate increased by 7 basis points sequentially, driven by customer volume mix [25]. Operating Income and Margins - GAAP operating income margin for the total company was 26.1% for the twelve months ended December 31, 2024, with adjusted operating income margin at 40.3% [10]. - GAAP operating income margin for the Mobility segment was 33.1%, while the adjusted operating income margin was 42.3%, down 0.7% year-over-year due to lower fuel prices [14]. - The adjusted operating income margin for the Benefits segment increased to 41.7%, compared to 33.2% in 2023, driven by high flow-through of custodial income [18]. - Adjusted operating income for the twelve months ended December 31, 2024, is projected to be $307.0 million, with an adjusted operating income margin of 41.5% [19]. - Total segment adjusted operating income for the twelve months ended December 31, 2023, was $1,118.4 million, up 9.7% from $1,019.8 million for the twelve months ended December 31, 2022 [51]. Earnings and Guidance - Adjusted earnings per share increased by 5% on a year-over-year basis, despite macroeconomic headwinds, with underlying revenue growth during the quarter remaining flat compared to the prior year [7]. - The company reported a year-over-year change in GAAP income per diluted share of 21.8% for the twelve months ended December 31, 2024, reaching $7.50 [8]. - Adjusted net income per diluted share for Q1 2025 is projected to be between $3.35 and $3.50, with full year guidance of $14.65 to $15.25, indicating a $0.33 decrease from FY2024 midpoint [40]. - The company adjusted its long-term organic revenue growth target from 8-12% to 5-10% [39]. - The long-term adjusted earnings per share target has been updated to a range of 10-15% [39]. Cash Flow and Liquidity - Operating cash flow for Q4 2024 was reported at $761.9 million, with a full-year adjusted free cash flow of $562 million [34]. - The company ended the year with $735 million in available liquidity, including corporate cash and borrowing capacity [28]. - Adjusted free cash flow for the twelve months ended December 31, 2023, was $510.6 million, compared to $524.2 million for the twelve months ended December 31, 2022 [58]. Capital Expenditures and Investments - Capital expenditures for Q4 2024 totaled $41.9 million, with a total of $438.2 million deployed in capital over the quarter [36]. - The company plans to invest in new product capabilities and additional sales and marketing resources in 2025 to capitalize on growth opportunities in the Direct business [25]. - Share repurchases in 2024 amounted to approximately $650 million, with a total authorization increased to $2.05 billion [37]. Debt and Financial Position - Total long-term debt as of 12/31/23 was $2.828 billion, with a net increase from previous quarters [28]. - The leverage ratio stands at 2.6 times, within the long-term target range of 2.5 to 3.5 times [28]. - Interest expense is expected to decrease by more than $10 million annually due to refinancing activities in 2024 [30]. - The company has a three-year runway before its next debt maturity, allowing for strategic market opportunities [29]. Economic Outlook - The company expects U.S. GDP growth of approximately 2% in 2025, with no benefits from future M&A activity factored into the guidance [40]. - Average U.S. retail fuel prices are expected to be $3.26 per gallon for Q1 2025 and $3.25 for the full year, a decrease of $0.22 or 6% from prior guidance [40]. - Mobility segment revenue growth is anticipated to be 1-3% for the year, excluding fuel price and FX rate changes [41]. - Corporate Payments segment revenue is expected to be slightly negative for the full year due to OTA customer transition, with growth accelerating in the second half [41].

The market expects Wex (WEX) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on Febru ...

Group 1 - Wex's shares are experiencing pressure due to lower fuel prices and weak spending on commercial travel by enterprise customers [1] - The macroeconomic backdrop is challenging, impacting earnings growth outlook for Wex [1] Group 2 - The analyst has a focus on undercovered companies, with a watchlist of over 50 companies in sectors like technology, software, electronics, and energy transition [1] - The analyst has over 7 years of personal investment experience and aims to identify asymmetric investment opportunities for market-beating returns [1]

Core Viewpoint - WEX Inc. reported disappointing third-quarter 2024 results, with earnings and revenues falling short of Zacks Consensus Estimates, leading to a decline in stock price and lowered guidance for future quarters [1][2]. Financial Performance - For Q4 2024, WEX revised its revenue guidance down to $630-$640 million from the previous $688-$698 million, with the midpoint of $635 million slightly above the Zacks Consensus Estimate of $633.8 million [2]. - The adjusted diluted earnings per share (EPS) guidance was lowered to $3.51-$3.61 from $4.42-$4.52, which is below the consensus estimate of $3.66 per share [3]. - For the full year 2024, revenue guidance was also reduced to $2.62-$2.63 billion from $2.68-$2.72 billion, again below the Zacks Consensus Estimate of $2.64 billion [3]. Quarterly Results - WEX's adjusted diluted EPS for the quarter was reported at $4.4, missing the Zacks Consensus Estimate by 1.6%, but showing a year-over-year increase of 7.4% [4]. - Revenues for the quarter were $665.5 million, which missed the consensus estimate by 3.3%, but increased by 2.2% compared to the same quarter last year [4]. Segment Performance - The Mobility segment's revenues grew by 2% year-over-year to $357.2 million, exceeding estimates, driven by investments in digital marketing [6]. - The Corporate Payments segment reported revenues of $126.9 million, down 6.1% from the previous year and missing estimates [6]. - The Benefits segment saw a 9.3% year-over-year revenue increase to $181.5 million, although it also fell short of projections [7]. Operating Results - Adjusted operating income rose 12.3% to $196.4 million year-over-year, but missed estimates significantly [8]. - The adjusted operating income margin improved to 47.6%, which was above projections [8]. Balance Sheet and Cash Flow - At the end of Q3 2024, WEX had cash and cash equivalents of $682.6 million, a significant increase from $7 million in the previous quarter [9]. - Long-term debt decreased to $3 billion from $3.1 billion [9]. - The company reported a cash utilization of $7 million from operating activities and an adjusted free cash flow utilization of $161.1 million [9]. Stock Performance - WEX's stock has declined by 18.1% over the past six months, contrasting with a 14.4% rise in its industry and a 15.4% increase in the Zacks S&P 500 Composite [5].

Gas prices unexpectedly came down, and that's hurting revenue.Shares of financial technology (fintech) company Wex (WEX -14.98%) plunged on Thursday after reporting financial results for the third quarter of 2024 that fell well below management's prior guidance. As of 3:10 p.m. ET, Wex stock was down 14%.Lower fuel prices hit WexWex is an enterprise fintech company specializing in fuel cards, corporate travel, and benefits-management software. In Q3, the company generated revenue of $665 million, which was ...

WEX Inc. (NYSE:WEX) Q3 2024 Earnings Conference Call October 24, 2024 10:00 AM ET Company Participants Steve Elder – Senior Vice President-Investor Relations Melissa Smith – Chief Executive Officer and President Jagtar Narula – Chief Financial Officer Conference Call Participants David Koning – Baird Nik Cremo – UBS Andrew Bauch – Wells Fargo Dan Dolev – Mizuho Mihir Bhatia – Bank of America Sanjay Sakhrani – KBW Nate Svensson – Deutsche Bank Ramsey El-Assal – Barclays Andrew Jeffrey – William Blair Operato ...

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.01 par value WEX New York Stock Exchange UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period fro ...