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WEX's Q3 Earnings and Revenues Surpass Estimates, Increase Y/Y

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·3-min read
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  • WEX
  • IQV
  • OMC
  • EFX

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

Adjusted earnings of $2.45 per share surpassed the Zacks Consensus Estimate by 7% and increased more than 54% year over year. Total revenues of $482.8 million surpassed the consensus mark by 1% and increased 26% year over year.

WEX’s shares have rallied 46.1% in the past year against 1.9% decline of the industry it belongs to.

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

Revenues by Segment

Fleet Solutions revenues were up 25% year over year to $286.4 million. Travel and Corporate Solutions revenues of $91 million were up 42% year over year. Health and Employee Benefit Solutions revenues of $105.4 million increased 18% year over year.

Key Performance Metrics

Average number of vehicles serviced was 16.2 million, up 6% from the year-ago quarter’s figure. Total fuel transactions processed increased 8% from the year-ago quarter’s tally to 161.8 million. Payment processing transactions were up 11% year over year to 134 million. Travel and Corporate Solutions' purchase volume climbed more than 100% year over year to $12.8 billion. Health and Employee Benefit Solutions' average number of Software-as-a-Service accounts in the U.S. were up 16% to 16.9 million, year over year.

Operating Results

Adjusted operating income came in at $178.8 million compared with the prior-year quarter’s figure of $125.4 million. Adjusted operating income margin increased to 37% from the year-ago quarter’s level of 32.8%.

Balance Sheet

WEX exited the quarter with cash and cash equivalents balance of $533.8 million compared with $425.3 million witnessed at the end of the prior quarter. Long-term debt was $2.8 billion compared with $2.9 billion at the end of the previous quarter.

Guidance

For the fourth quarter of 2021, WEX anticipates revenues in the range of $468 million to $483 million, the midpoint ($475.5 million) of which is lower than the current Zacks Consensus Estimate of $477.91 million. Adjusted net income is expected between $2.25 and $2.45 per share, the midpoint ($2.35 per share) of which is higher than the Zacks Consensus estimate of $2.28.

For full-year 2021, revenues are expected between $1.821 billion to $1.836 billion, the midpoint ($1.83 million) of which is the same as the current Zacks Consensus Estimate. Adjusted net income is expected between $8.81 and $9.01 per share, higher than the Zacks Consensus estimate of $8.66.

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 reported better-than-expected third-quarter 2021 results. Adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6% but declined 1.1% on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6% and improved 14.5% year over year.

IQVIA Holdings IQV reported impressive third-quarter 2021 results, with earnings per share of $2.17 beating the consensus mark by 1.9% and improving 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1% and increased 21.7% year over year.

Omnicom OMC reported third-quarter 2021 adjusted earnings of $1.65 per share that beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.


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

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

WEX Inc. (WEX) : Free Stock Analysis Report

IQVIA Holdings Inc. (IQV) : Free Stock Analysis Report

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