File Photo / Tim Greenway
Melissa Smith
Updated: April 25, 2024
WEX misses on Q1 results, but raises full-year outlook
Photo / Renee Cordes
WEX Inc. is a global company based on Porttland's eastern waterfront.
WEX Inc. (NYSE: WEX), the Portland-based financial technology provider, on Thursday posted first-quarter earnings and revenues that fell short of market expectations but raised its full-year financial outlook.
Adjusted net income was $146.7 million, or $3.46 per diluted share, up 5% from $145.8 million, or $3.31 per diluted share a year earlier.
The EPS figure fell shy of the $3.47 earnings per share consensus forecast of analysts polled by Zacks Investment Research.
First-quarter revenue rose 7% to $652.7 million, up from $612 million a year earlier but 0.13% below the Zacks consensus forecast.
In its earnings announcement, the company said that negative fuel price spreads in Europe offset the revenue benefit from higher-than-expected domestic fuel prices.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
The company is a financial technology services provider to businesses in the areas of fleet mobility and fueling, corporate payments, travel industry payments and employee and member benefits.
Total volume across all segments was $56.8 billion in the first quarter, an increase of 8.6% from the previous quarter.
“WEX had another outstanding year as we continued to drive profitable growth, generate strong adjusted free cash flow, and demonstrate our resiliency,” said CEO Melissa Smith.
'We expect this momentum to continue into 2024 driven by the strength of our sales engine and further optimization efforts across the business, as well as the full-year benefit of our recent acquisitions," she added.
WEX shares have a current market value of around $9.74 billion, as of Wednesday's close. Shares are trading 32% higher than a year ago.
Bullish outlook
Looking ahead to the full year, WEX said it now expects revenue in the range of $2.73 billion to $2.77 billion, up from its previous forecast of $2.7 billion to $2.74 billion.
Adjusted net income is now expected to be in the range of $16.10 to $16.60 per diluted share, an increase from the previous range of $15.90 to $16.40 per diluted share.
WEX plans to cut around 70 jobs from its 7,200-strong global workforce although fewer than five jobs in Maine will be affected by the cuts, Mainebiz reported last week.
IDEXX next up
IDEXX Laboratories Inc. (Nasdaq: IDXX), another Maine-based publicly traded company, is scheduled to release first-quarter earnings before the stock market's opening bell on Wednesday, May 1.
In February, the Westbrook-based maker of veterinary diagnostics and software posted fourth-quarter earnings and revenue that exceeded expectations.
IDEXX shares have a market value of around $41.05 billion, as of Wednesday's close. The stock is trading 2.28% higher than a year ago.
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