Wright Express posts loss, shares jump
South Portland-based Wright Express Corp. today posted a second-quarter net loss of $24 million, though its earnings beat market estimates and sent its shares up 21% this morning.
Wright Express, which provides payment processing and information management services to the U.S. commercial and government fleet, posted revenue of $111.2 million during the second quarter, which ended June 30, a 29% increase over the same quarter last year.
The $24.4 million net loss for the quarter, compared to a $16.4 million net profit during the same period last year, included a non-cash charge of $74.1 million related to mark-to-market adjustments of fuel price derivatives, which the company uses to reduce its risk to the variability of fuel prices. Wright Express increased its 2008 revenue forecast from $400-$410 million to $421-$431 million.
Wright Express also said today it will acquire the assets of Financial Automation Limited, a New Zealand-based provider of fuel card processing software, for roughly $9 million. The transaction is expected to close in the third quarter of 2008.
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