WEX Earnings Prediction
The chart below shows how WEX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WEX sees a +3.30% change in stock price 10 days leading up to the earnings, and a +1.07% change 10 days following the report. On the earnings day itself, the stock moves by -2.01%. This data can give you a slight idea of what to expect for the next quarter's release.
WEX Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
665.50M
2.16%
-1.19%
Gross Margin
59.74%
-2.61%
3.54%
Operating Margin
36.02%
17.21%
18.29%
Net Margin
15.46%
448.23%
35.26%
EPS
2.52
500.00%
37.70%
No Data Available
WEX Earnings Analysis
WEX Inc. Corporation (WEX.N) Earnings Conference Call
Positive
Q3 Revenue Increase: 1. Revenue Growth: WEX reported total revenue of $665 million for Q3 2024, marking a 2% increase compared to the same period last year, with over 80% of this revenue being recurring in nature.
Adjusted Net Income Growth: 2. Adjusted Net Income Increase: The company achieved an adjusted net income of $177.5 million, or $4.35 per diluted share, reflecting a 7% increase year-over-year.
Cash Flow Performance: 3. Strong Cash Flow Generation: WEX generated approximately $393 million in adjusted free cash flow year-to-date through September 2024, demonstrating robust cash generation capabilities.
Share Repurchase Strategy: 4. Share Repurchase Program: The company has spent $544 million on share repurchases through the end of Q3 2024, reflecting a disciplined capital allocation strategy and commitment to enhancing shareholder value.
Cost Savings Achievement: 5. Cost Management Success: WEX realized approximately $110 million in annual run rate cost savings, exceeding their initial target of $100 million, which has been reinvested into growth initiatives.
Negative
Revenue Guidance Cut: 1. Revenue Guidance Reduction: WEX revised its 2024 revenue guidance down by $73 million, reflecting a decrease in expected revenue due to lower fuel prices and softness in same-store sales.
Mobility Segment Performance Issues: 2. Mobility Segment Weakness: The Mobility segment experienced a 2% revenue increase, but this was below expectations, with a notable decline in same-store sales and a $10 million impact from an unplanned charge.
Corporate Payments Revenue Drop: 3. Corporate Payments Decline: Revenue in the Corporate Payments segment decreased by 6% year-over-year, primarily due to a transition of a large online travel agency customer, which is expected to continue impacting results into next year.
Fuel Price Impact on Earnings: 4. Lower Fuel Prices Impact: The decline in fuel prices negatively impacted adjusted net income by approximately $0.33 per share after taxes, contributing to the overall earnings guidance reduction.
Rising Credit Loss Provisions: 5. Increased Credit Loss Provisions: WEX anticipates a material step-up in credit losses for Q4, driven by a lack of repeat benefits from lower charge-offs seen in Q3, indicating potential underlying issues in the customer base.
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WEX Earning Call Sentiment
WEX Inc. (WEX) Q3 2024 Earnings Call Transcript
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00:00
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WEX.N
1.48%Positive
The earnings call presents a mixed but mostly positive outlook. The share repurchase program and increased margins are strong positives. Despite lowered revenue guidance, strong profitability, cost management, and optimistic guidance for certain segments, particularly Benefits, are promising. The Q&A session highlighted sustainable pricing and strategic growth expectations. However, reduced volume expectations and cautious management responses on macroeconomic factors temper the outlook slightly. Given the mix of positive and negative factors, and the absence of market cap information, the stock is likely to experience a modest positive movement.