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Adjusted earnings of $2.58 per share surpassed the Zacks Consensus Estimate by 4.9% and increased 77.9% year over year. Total revenues of $497.5 million surpassed the consensus mark by a slight margin and increased 25% year over year.
WEX’s shares have declined 23% in the past year compared with 21.2% decline of the industry it belongs to.
Quarter Details
Fleet Solutions’ revenues were up 30% year over year to $306.8 million. Travel and Corporate Solutions’ revenues of $81.5 million were up 9% year over year. Health revenues registered 23% year-over-year growth.
Average number of vehicles serviced was 16.9 million, up 7% from the year-ago quarter’s figure. Total fuel transactions processed increased 9% from the year-ago quarter’s tally to 161.7 million. Payment processing transactions were up 12% year over year to 132.9 million.
Travel and Corporate Solutions' purchase volume climbed more than 100% year over year to $10.9 billion. Health and Employee Benefit Solutions' average number of Software-as-a-Service accounts in the U.S. were up 12% to 16.2 million, year over year.
Adjusted operating income margin increased to 37.1% from the year-ago quarter’s 28.8%.
WEX exited the quarter with cash and cash equivalents balance of $588.9 million compared with $533.8 million witnessed at the end of the prior quarter. Long-term debt was $2.7 billion compared with $2.8 billion at the end of the previous quarter.
Guidance
For the first quarter of 2022, WEX anticipates revenues in the range of $495 million to $505 million, the midpoint ($500 million) of which is higher than the current Zacks Consensus Estimate of $496.83 million. Adjusted net income is expected between $2.55 and $2.65 per share, higher than the Zacks Consensus estimate of $2.45.
For full-year 2022, revenues are expected between $2.05 billion and $2.09 billion, the midpoint ($2.07 million) of which is the same as the current Zacks Consensus Estimate. Adjusted net income is expected between $11.2 and $11.6 per share, higher than the Zacks Consensus estimate of $10.8.
Performance of Some Other Business Services Companies
Robert Half International (RHI - Free Report) delivered fourth-quarter 2021 earnings of $1.51 per share that beat the consensus mark by 5.6% and rose 79.8% year over year.
Revenues of $1.77 billion surpassed the consensus mark by 4.3% and increased 36.2% year over year on a reported basis and 36% on an as-adjusted basis. RHI currently carries a Zacks Rank #1 (Strong Buy).
Automatic Data Processing (ADP - Free Report) reported better-than-expected second-quarter fiscal 2022 results. Adjusted EPS of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.
Total revenues of $4.03 billion beat the consensus mark by 1.1% and increased 9% year over year. ADP currently carries a Zacks Rank #2 (Buy).
Rollins (ROL - Free Report) reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. Adjusted earnings of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year.
Revenues of $600.3 million beat the consensus mark by 3.3% and rose 11.9% year over year. ROL currently carries a Zacks Rank #2.
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WEX's Q4 Earnings and Revenues Surpass Estimates, Up Y/Y
WEX Inc. (WEX - Free Report) delivered better-than-expected fourth-quarter 2021 results.
Adjusted earnings of $2.58 per share surpassed the Zacks Consensus Estimate by 4.9% and increased 77.9% year over year. Total revenues of $497.5 million surpassed the consensus mark by a slight margin and increased 25% year over year.
WEX’s shares have declined 23% in the past year compared with 21.2% decline of the industry it belongs to.
Quarter Details
Fleet Solutions’ revenues were up 30% year over year to $306.8 million. Travel and Corporate Solutions’ revenues of $81.5 million were up 9% year over year. Health revenues registered 23% year-over-year growth.
Average number of vehicles serviced was 16.9 million, up 7% from the year-ago quarter’s figure. Total fuel transactions processed increased 9% from the year-ago quarter’s tally to 161.7 million. Payment processing transactions were up 12% year over year to 132.9 million.
Travel and Corporate Solutions' purchase volume climbed more than 100% year over year to $10.9 billion. Health and Employee Benefit Solutions' average number of Software-as-a-Service accounts in the U.S. were up 12% to 16.2 million, year over year.
Adjusted operating income margin increased to 37.1% from the year-ago quarter’s 28.8%.
WEX Inc. Price, Consensus and EPS Surprise
WEX Inc. price-consensus-eps-surprise-chart | WEX Inc. Quote
Balance Sheet
WEX exited the quarter with cash and cash equivalents balance of $588.9 million compared with $533.8 million witnessed at the end of the prior quarter. Long-term debt was $2.7 billion compared with $2.8 billion at the end of the previous quarter.
Guidance
For the first quarter of 2022, WEX anticipates revenues in the range of $495 million to $505 million, the midpoint ($500 million) of which is higher than the current Zacks Consensus Estimate of $496.83 million. Adjusted net income is expected between $2.55 and $2.65 per share, higher than the Zacks Consensus estimate of $2.45.
For full-year 2022, revenues are expected between $2.05 billion and $2.09 billion, the midpoint ($2.07 million) of which is the same as the current Zacks Consensus Estimate. Adjusted net income is expected between $11.2 and $11.6 per share, higher than the Zacks Consensus estimate of $10.8.
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
Robert Half International (RHI - Free Report) delivered fourth-quarter 2021 earnings of $1.51 per share that beat the consensus mark by 5.6% and rose 79.8% year over year.
Revenues of $1.77 billion surpassed the consensus mark by 4.3% and increased 36.2% year over year on a reported basis and 36% on an as-adjusted basis. RHI currently carries a Zacks Rank #1 (Strong Buy).
Automatic Data Processing (ADP - Free Report) reported better-than-expected second-quarter fiscal 2022 results. Adjusted EPS of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.
Total revenues of $4.03 billion beat the consensus mark by 1.1% and increased 9% year over year. ADP currently carries a Zacks Rank #2 (Buy).
Rollins (ROL - Free Report) reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. Adjusted earnings of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year.
Revenues of $600.3 million beat the consensus mark by 3.3% and rose 11.9% year over year. ROL currently carries a Zacks Rank #2.