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WEX's Q1 Earnings and Revenues Surpass Estimates, Up Y/Y

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WEX Inc. WEX delivered better-than-expected fourth-quarter 2021 results.

Adjusted earnings of $2.88 per share surpassed the Zacks Consensus Estimate by 6.3% and increased 61% year over year. Total revenues of $517.5 million surpassed the consensus mark by 2% and increased 26% year over year.

WEX’s shares have lost 21.7% in the past year compared with 30.4% decline of the industry it belongs to.

Quarter Details

Fleet Solutions’ revenues were up 31% year over year to $319.1 million. Travel and Corporate Solutions’ revenues of $77.3 million were up 9% year over year. Health and Employee Benefit Solutions revenues of $121.1 million registered 26% year-over-year growth.

Total volume across the company came in at $44.8 billion, up 50% year over year. Average number of vehicles serviced was 17.2 million, up 9% from the year-ago quarter’s figure. Fleet Solutions segment payment processing transactions were up 12% year over year to 132.7 million.

Travel and Corporate Solutions' purchase volume climbed 93% year over year to $11.8 billion. Health and Employee Benefit Solutions' average number of Software-as-a-Service accounts in the United States were up 15% to 17.8 million year over year.

Adjusted operating income increased to 45.3% from the year-ago quarter’s 139.6 million. Adjusted operating income margin was 39.2% compared with 34% in the year-ago quarter.

Balance Sheet

WEX exited the quarter with cash and cash equivalents balance of $577.5 million compared with $588.9 million witnessed at the end of the prior quarter. Long-term debt was $2.8 billion compared with $2.7 billion at the end of the previous quarter.

WEX Inc. Price, Consensus and EPS Surprise

WEX Inc. Price, Consensus and EPS Surprise
WEX Inc. Price, Consensus and EPS Surprise

WEX Inc. price-consensus-eps-surprise-chart | WEX Inc. Quote

Guidance

For the second quarter of 2022, WEX anticipates revenues in the range of $555 million to $565 million, the midpoint ($560 million) of which is higher than the current Zacks Consensus Estimate of $532.29 million. Adjusted net income is expected between $3.35 and $3.45 per share, higher than the Zacks Consensus estimate of $2.87.

For full-year 2022, revenues are expected between $2.155 billion and $2.195 billion, lower than the current Zacks Consensus Estimate of $2.87 billion. Adjusted net income is expected between $12.4 and $12.8 per share, higher than the Zacks Consensus estimate of $11.81.

Currently, WEX carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.

Performance of Some Other Business Services Companies

Within the broader Business Services sector, ManpowerGroup Inc. MAN, Omnicom Group Inc. OMC and Equifax Inc. EFX recently reported first-quarter 2022 results.

ManpowerGroup’s quarterly results beat earnings and revenue estimates. Adjusted earnings of $1.88 per share beat the consensus mark by 20.5% and improved 69.4% year over year.

MAN’s revenues of $5.14 billion surpassed the consensus mark by 0.7% and inched up 4.5% year over year.

Omnicom reported earnings of $1.39 per share that beat the consensus mark by 8.6% and increased 4.5% year over year.

OMC’s total revenues of $3.4 billion surpassed the consensus estimate by 5.4% but declined slightly year over year.

Equifax adjusted earnings of $2.22 per share that beat the consensus estimate by 3.3% and improved 13% on a year-over-year basis.

EFX’s revenues of $1.36 billion outpaced the consensus estimate by 2.4% and improved 12.4% year over year.


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ManpowerGroup Inc. (MAN) : Free Stock Analysis Report

Omnicom Group Inc. (OMC) : Free Stock Analysis Report

Equifax, Inc. (EFX) : Free Stock Analysis Report

WEX Inc. (WEX) : Free Stock Analysis Report

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