WEX CEO bullish on growth prospects as Q3 revenue jumps 19%
Courtesy/WEX
WEX has its global headquarters on Portland's eastern waterfront.
WEX Inc. (NYSE: WEX), a global provider of corporate payment solutions based in Portland, posted a 19% jump in third-quarter revenues driven by double-digit top-line growth across all segments.
Total revenues for the third quarter rose 19% to $460 million, up from $386.6 million for the same period last year.
That translates into earnings per share of $2.59 on a diluted basis, up 16% over a year ago and in line with the consensus estimate of analysts polled by Zacks Investment Research.
In a statement, WEX CEO Melissa Smith said that in the third quarter the company build upon strong momentum seen in the first six months of 2019.
"Despite macroeconomic headwinds, we drove strong revenue performance and improved operating income by expanding our market share and leveraging our recent strategic acquisitions," she said.
"Looking ahead," she added, "I am proud of the robust growth engine we have established and am confident our best-in-class services and technology position us for continued growth."
The company, headquartered on Portland's eastern waterfront, offers payment services for private and government fleets, and for travel and insurance companies. It also provides management services for healthcare benefits.
Other significant numbers
In the third quarter the average number of vehicles services was around 14.3 million, 22% higher than last year, while total fuel transactions increased 14% to 162.2 million.
Travel and corporate solutions' purchase volume jumped 20% to $11.5 billion.
Health and employee benefits solutions' average number of Software-as-a-Service (SaaS) accounts in the U.S. grew 18% to 13 million.
"WEX's impressive third-quarter results were a product of solid growth in each of our three segments, coupled with significant contributions from our recent acquisitions," said Roberto Simon, WEX's chief financial officer.
"As we approach the end of the year, we expect to experience a weaker macro-environment than what we have seen year-to-date with lower than anticipated fleet and travel customer volumes," he added
He also said that In the fourth quarter, the company would continue to focus in on integrating the recently acquired Discovery Benefits, Noventis and Go Fuel Card, and on executing strategic pillars "to make strides towards achieving our long-term strategy."
In late morning trading, shares of WEX were down 6.67%, to $190.28 a share.
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