Here's Why Wex Stock Plunged Today

Core Insights - Wex's stock price dropped significantly after reporting Q3 2024 financial results that were below management's expectations [1][2] - The company's revenue for Q3 reached a record $665 million, but this was only a 2% increase year-over-year and fell short of the projected $688 million to $698 million [2] - A decline in fuel prices negatively impacted Wex's revenue, leading to a $21 million headwind and prompting a reduction in full-year revenue guidance from $2.68 billion to $2.63 billion [2] Financial Performance - Wex generated a record revenue of $665 million in Q3 2024, representing a 2% year-over-year growth [2] - The company's operating margin for Q3 was 30%, indicating strong profit margins despite lower revenue [3] - Management has reduced its full-year revenue guidance to a best-case scenario of $2.63 billion, down from the previous expectation of at least $2.68 billion [2] Shareholder Impact - The decline in stock price may provide an opportunity for long-term shareholders, as Wex continues to generate cash even in challenging quarters [3] - Wex's management is actively repurchasing shares, with the share count reduced by 12% over the last two years [3] - A lower stock price allows for more effective share repurchases under the recently increased $1 billion authorization plan, potentially enhancing shareholder returns when revenue growth resumes [3]