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Adjusted earnings of $3.51 per share surpassed the Zacks Consensus Estimate by 2.3% and increased 43.3% year over year.
Total revenues of $616.1 million surpassed the consensus mark by 4.3% and increased 27.6% year over year, mainly driven by an increase in volumes from customer wins and renewals.
WEX’s shares have gained 3% in the past year against the 21.3% decline of the industry it belongs to.
Quarter Details
Fleet Solutions’ revenues were up 32% year over year to $378.1 million. Travel and Corporate Solutions’ revenues of $114 million were up 25% year over year. Health and Employee Benefit Solutions’ revenues of $124.1 million registered 18% year-over-year growth.
Total volume across the company came in at $57.5 billion, up 41% year over year. The average number of vehicles serviced was around 18.3 million, up 13% from the year-ago quarter’s figure. Fleet Solutions segment’s payment processing transactions were up 8% year over year to 145.3 million.
Travel and Corporate Solutions' purchase volume climbed 61% year over year to $20.7 billion. Health and Employee Benefit Solutions' average number of Software-as-a-Service accounts in the United States was up 8% to 18.2 million year over year.
Adjusted operating income increased 34.9% to $241.2 million from the year-ago quarter’s $178.8 million. The adjusted operating income margin was 37% compared with 39.1% in the year-ago quarter.
Balance Sheet
WEX exited the quarter with a cash and cash equivalents balance of $759.4 million compared with $438.8 million witnessed at the end of the prior quarter. Long-term debt was $2.6 billion compared with $2.8 billion at the end of the previous quarter.
For the fourth quarter of 2022, WEX anticipates revenues in the range of $570-$580 million. The current Zacks Consensus Estimate is pegged at $579.5 million. Adjusted net income is expected between $3.15 and $3.25 per share. The midpoint ($3.2 per share) is slightly lower than the Zacks Consensus estimate of $3.21.
WEX raised its guidance for full-year 2022. Revenues are now expected between $2.302 billion and $2.312 billion compared with the prior guidance of $2.25-$2.28 billion. The Zacks Consensus Estimate stands at $2.31 billion. Adjusted net income is now expected between $13.24 and $13.34 per share compared with the previously guided range of $13.05-$13.3 per share. The midpoint ($13.29 per share) of the revised guided range is lower than the Zacks Consensus estimate of $13.31.
Recent Performance of Some Other Business Services Companies
Equifax (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both its earnings and revenues surpassed the respective Zacks Consensus Estimate.
EFX’s adjusted earnings of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. Revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year.
OMC’s earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
The Interpublic Group of Companies (IPG - Free Report) reported third-quarter 2022 adjusted earnings of 63 cents per share, beating the Zacks Consensus Estimate by 6.8%. The bottom line was constant on a year-over-year basis.
IPG’s net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.
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WEX Beats on Q3 Earnings and Revenues, Raises FY22 View
WEX Inc. (WEX - Free Report) delivered better-than-expected third-quarter 2022 results.
Adjusted earnings of $3.51 per share surpassed the Zacks Consensus Estimate by 2.3% and increased 43.3% year over year.
Total revenues of $616.1 million surpassed the consensus mark by 4.3% and increased 27.6% year over year, mainly driven by an increase in volumes from customer wins and renewals.
WEX’s shares have gained 3% in the past year against the 21.3% decline of the industry it belongs to.
Quarter Details
Fleet Solutions’ revenues were up 32% year over year to $378.1 million. Travel and Corporate Solutions’ revenues of $114 million were up 25% year over year. Health and Employee Benefit Solutions’ revenues of $124.1 million registered 18% year-over-year growth.
Total volume across the company came in at $57.5 billion, up 41% year over year. The average number of vehicles serviced was around 18.3 million, up 13% from the year-ago quarter’s figure. Fleet Solutions segment’s payment processing transactions were up 8% year over year to 145.3 million.
Travel and Corporate Solutions' purchase volume climbed 61% year over year to $20.7 billion. Health and Employee Benefit Solutions' average number of Software-as-a-Service accounts in the United States was up 8% to 18.2 million year over year.
Adjusted operating income increased 34.9% to $241.2 million from the year-ago quarter’s $178.8 million. The adjusted operating income margin was 37% compared with 39.1% in the year-ago quarter.
Balance Sheet
WEX exited the quarter with a cash and cash equivalents balance of $759.4 million compared with $438.8 million witnessed at the end of the prior quarter. Long-term debt was $2.6 billion compared with $2.8 billion at the end of the previous quarter.
WEX Inc. Price, Consensus and EPS Surprise
WEX Inc. price-consensus-eps-surprise-chart | WEX Inc. Quote
Guidance
For the fourth quarter of 2022, WEX anticipates revenues in the range of $570-$580 million. The current Zacks Consensus Estimate is pegged at $579.5 million. Adjusted net income is expected between $3.15 and $3.25 per share. The midpoint ($3.2 per share) is slightly lower than the Zacks Consensus estimate of $3.21.
WEX raised its guidance for full-year 2022. Revenues are now expected between $2.302 billion and $2.312 billion compared with the prior guidance of $2.25-$2.28 billion. The Zacks Consensus Estimate stands at $2.31 billion. Adjusted net income is now expected between $13.24 and $13.34 per share compared with the previously guided range of $13.05-$13.3 per share. The midpoint ($13.29 per share) of the revised guided range is lower than the Zacks Consensus estimate of $13.31.
Currently, WEX carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Recent Performance of Some Other Business Services Companies
Equifax (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both its earnings and revenues surpassed the respective Zacks Consensus Estimate.
EFX’s adjusted earnings of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. Revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year.
Omnicom (OMC - Free Report) also reported better-than-expected third-quarter 2022 results.
OMC’s earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
The Interpublic Group of Companies (IPG - Free Report) reported third-quarter 2022 adjusted earnings of 63 cents per share, beating the Zacks Consensus Estimate by 6.8%. The bottom line was constant on a year-over-year basis.
IPG’s net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.