WEX says fuel prices, exchange rates crimped Q4 results

WEX Inc. headquarters building exterior in Portland.

Photo / Renee Cordes WEX Inc. is a financial technology services provider headquartered in Portland.

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Blaming "unfavorable" fuel prices and currency exchange rates, WEX Inc. (NYSE: WEX) posted a decrease in fourth-quarter revenue and earnings.

Fourth-quarter revenue fell 4% to $636.5 million from $663.3 million a year earlier, the Portland-based financial technology services provider said late Wednesday after markets closed.

The $26.8 million decrease includes a net $26.6 million unfavorable impact from fuel prices and spreads and a $1.3 million unfavorable impact from foreign exchange rates, WEX said.

Adjusted fourth-quarter net income was $142.9 million, or $3.57 per diluted share, down 7% from $163.9 million, or $3.82 per diluted share, for the same period last year.

Both revenues and earnings exceeded consensus estimates of analysts polled by Zacks Investment Research.

WEX, led by CEO Melissa Smith, provides fintech services to businesses in fleet mobility and fueling, corporate payments, travel industry payments and employee and member benefits.

Last year, the company launched an app to help truckers save money on fuel. In Europe, WEX has expanded its electric vehicle charging services for commercial fleets, the company announced last week.

"As we enter 2025, we believe that our targeted investments in product innovation and sales expansion will set the stage for WEX's long-term success," Smith said in Wednesday’s earnings release. “We anticipate that these initiatives will enhance our competitive edge and ultimately accelerate growth. This will position WEX to deliver exceptional value to our shareholders."

A conference call with analysts and investors was scheduled for Thursday morning.

2025 outlook

For the first quarter of 2025, WEX said it is expects revenue in the range of $625 million to $640 million and adjusted net income in the range of $132 million to $138 million, or $3.35 to $3.50 per diluted share.

For the full year, the company projects revenue in the range of $2.6 billion to $2.66 billion and adjusted net income in the range of $571 million to $595 million, or $14.65 to $15.25 per diluted share.

As of Wednesday's market close, WEX shares were valued at around $7.43 billion. The stock is trading 7.4% lower than a year ago.