LONDON, UK / ACCESSWIRE / December 12, 2017 / Active-Investors free earnings report on WEX Inc. (NYSE: WEX) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=WEX. The Company reported its third quarter fiscal 2017 operating results on November 01, 2017. The provider of fuel payment processing for fleet vehicles delivered a fifth consecutive quarter of double-digit revenue growth, and exceeded top- and bottom-line expectations. Register today and get free access to our complimentary member's area where many more reports are available:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, WEX Inc. most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:
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Earnings Highlights and Summary
WEX's total revenues increased 13% to $324.0 million in Q3 2017 from $287.8 million in the third quarter of 2016. During the reported quarter, higher fuel prices positively impacted the Company's revenue by $8.0 million compared to the prior year's same period. The Company's revenue numbers topped analysts' estimates of $311.5 million.
During Q3 2017, WEX's GAAP net earnings attributable to shareholders advanced $14.3 million to $34.0 million, or $0.79 per diluted share, compared to $19.7 million, or $0.46 per diluted share, for Q3 2016. The Company's adjusted net income attributable to shareholders was $1.43 per diluted share, up 14% from $1.25 in the prior year's comparable quarter, and ahead of Wall Street's estimates of $1.40 per share.
Performance Metrics
During Q3 2017, WEX's average number of vehicles serviced worldwide was approximately 11.0 million, reflecting an increase of 6% from Q3 2016. The Company's total fuel transactions processed increased 4% to 132.0 million on a y-o-y basis. WEX's payment processing transactions increased 7% to 110.0 million, while non-payment processing revenue increased $20.2 million, or 20% on a y-o-y basis.
For Q3 2017, WEX's average expenditure per payment processing transaction was $69.87, which represented an increase of 9% from Q3 2016. In the reported quarter, US retail fuel price increased 12% to $2.51 per gallon from $2.24 per gallon in the year ago corresponding period.
During Q3 2017, WEX's total Travel and Corporate Solutions card purchase volume grew 21% to $8.7 billion from $7.1 billion in Q3 2016, driven by volume growth across all geographies. The Company's total Health and Employee Benefits Solutions purchase volume increased 9% to $955.7 million on a y-o-y basis in the reported quarter.
Segment Results
During Q3 2017, WEX's Fleet Solution segment achieved $212.1 million in revenue, reflecting an increase of 15% on a y-o-y basis, while the Company's Travel and Corporate Solutions segment's revenue fell 4% to $61 million. The net interchange rate for the Company's virtual card was 51 basis points in the reported quarter.
WEX's Health and Employee Benefit Solutions segment's revenue surged 28% to $50.9 million for Q3 2017, driven by account growth and spend volume in both the US Healthcare and Brazilian benefit businesses. The Company's Benefit business in Brazil reported strong results, growing more than 60% in the reported quarter, and notching a fifth consecutive quarter of more than 50% growth, excluding the impact from currency fluctuations.
Cash Matters
WEX ended Q3 2017 with $251 million in cash, compared to $191 million at the end of Q4 2016. At quarter end, the Company had a total balance of $2.1 billion on its revolving line of credit, term loans, and notes.
At the end of Q3 2017, WEX's leverage ratio stood at approximately 4.1x. In the reported quarter, the Company closed the repricing of the secured term loans under its existing credit facility.
Financial Guidance and Assumptions
For the full year 2017, WEX is forecasting revenue to be in the range of $1.24 billion to $1.25 billion, and adjusted net income to be in the band of $228 million to $231 million, or $5.31 to $5.38 per diluted share.
For the fourth quarter of 2017, WEX expects revenue in the range of $317 million to $327 million, and adjusted net income in the band of $60 million to $63 million, or $1.40 to $1.47 per diluted share.
Stock Performance Snapshot
December 11, 2017 - At Monday's closing bell, WEX Inc.'s stock marginally advanced 0.61%, ending the trading session at $129.03.
Volume traded for the day: 374.42 thousand shares.
Stock performance in the last month – up 3.31%; previous three-month period – up 16.99%; past twelve-month period – up 11.27%; and year-to-date – up 15.62%
After yesterday's close, WEX Inc.'s market cap was at $5.50 billion.
Price to Earnings (P/E) ratio was at 64.84.
The stock is part of the Services sector, categorized under the Business Services industry. This sector was up 0.3% at the end of the session.
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