WEX Stock Rises 17% Since Q4 Earnings & Revenues Beat Estimates

Core Insights - WEX Inc. reported strong fourth-quarter 2024 results, with earnings and revenues exceeding the Zacks Consensus Estimate, leading to a 17% stock price increase since the results were released on February 5 [1] Financial Performance - Adjusted earnings per share were $3.57, surpassing the Zacks Consensus Estimate by 0.9%, but down 6.5% year-over-year [2] - Revenues reached $636.5 million, beating the consensus estimate by 0.7%, but declined 4% compared to the previous year [2] Segment Performance - The Mobility segment's revenues decreased 1.4% year-over-year to $345.2 million, exceeding the estimate of $334.5 million due to investments in digital marketing [3] - The Corporate Payments segment's revenues were $104.3 million, down 22.7% from the fourth quarter of 2023, missing the estimate of $122.8 million [3] - The Benefits segment's revenues increased 4.9% year-over-year to $186.9 million, beating the estimate of $175.8 million, driven by strong SaaS account growth [4] Operating Results - Adjusted operating income declined 6.5% to $269.8 million from the year-ago quarter, surpassing the estimate of $246.1 million [5] - The adjusted operating income margin was 42.4%, down 110 basis points year-over-year, but better than the projected 38.9% [5] Balance Sheet & Cash Flow - WEX ended the quarter with cash and cash equivalents of $595.8 million, down from $682.6 million in the previous quarter [6] - Long-term debt remained flat at $3.1 billion [6] - The company generated $638.4 million in cash from operating activities, with adjusted free cash flow of $169.5 million and capital expenditures totaling $38.7 million [6] Guidance - For Q1 2025, WEX expects revenues between $625 million and $640 million, with the midpoint above the current Zacks Consensus Estimate of $628.4 million [7] - Adjusted net income is anticipated to be between $3.35 and $3.50 per share, below the Zacks Consensus estimate of $3.72 [7] - For 2025, revenues are projected to be between $2.60 billion and $2.66 billion, with the midpoint above the current Zacks Consensus Estimate of $2.61 billion [8] - Adjusted net income for 2025 is expected to be between $14.65 and $15.25 per share, below the Zacks Consensus estimate of $16.49 [8]