NYSE$WEX

WEX Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

WEX's Q3 2024 performance was marked by record revenue and strong profitability, though overall results fell short of expectations due to macroeconomic challenges.

WEX Inc. reported a 2% year-over-year increase in revenue, reaching a record $665 million for the third quarter of 2024. GAAP net income increased to $102.9 million, or $2.52 per diluted share, while adjusted net income was $177.5 million, or $4.35 per diluted share. The company spent $370 million on share repurchases during the quarter.

  • Revenue increased by 2% year-over-year to a record $665 million, driven by growth in the Benefits and Mobility segments.
  • GAAP net income increased to $102.9 million, or $2.52 per diluted share.
  • Adjusted net income reached $177.5 million, or $4.35 per diluted share, a 7% increase per diluted share year-over-year.
  • The company repurchased $370 million worth of shares in Q3.

Headline financials

Total Revenue

$666M

Previous: $651M+2.2%
EPS

$2.52

Previous: $4.05-37.8%
Mobility transactions

146.5M

Previous: 144.6M+1.3%
Fuel gallons processed

3.7B

No prior period
Avg US fuel price

$3.45

No prior period
Fuel dollars processed

$13.2B

No prior period
Net processing rate

0.0%

No prior period
Late fee revenue

$59M

No prior period
Net late fee rate

0.0%

No prior period
Avg SaaS accounts

20.3M

Previous: 19.9M+2.0%
Benefits purchase volume

$1.65B

No prior period
Corporate purchase volume

$23.4B

Previous: $27.9B-16.1%
Net interchange rate

0.0%

No prior period
Processing revenue

$105M

No prior period
Capital Expenditures

-$109M

Previous: -$102M-6.8%
Free Cash Flow

-$5.7M

Previous: -$83.3M+93.2%
Net Income

$103M

Previous: $18.4M+459.2%
Operating Income

$196M

Previous: $175M+12.3%
Gross Profit

$416M

Previous: $416M+0.0%
Cash & Equivalents

$535M

Previous: $958M-44.1%
Total Assets

$14B

Previous: $13.9B+0.4%
Stock-Based Comp

$28.6M

Previous: $30.5M-6.2%

Revenue & EPS history

WEX · Revenue · Quarterly

$666M

Q3 2024+2.2%vs Q3 2023
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

WEX · $651M total across 3 segments · Q3 2023

  • Mobility
    $350M
  • Benefits
    $166M
  • Corporate Payments
    $135M

Forward guidance

For Q4 2024, WEX anticipates revenue between $630 million and $640 million, with adjusted net income per diluted share ranging from $3.51 to $3.61. The full-year 2024 revenue is projected to be in the range of $2.62 billion to $2.63 billion, and adjusted net income per diluted share is expected to be between $15.21 and $15.31.

Tailwinds

  • Revenue guidance for Q4 2024 is between $630 million and $640 million.
  • Adjusted net income per diluted share for Q4 2024 is expected to be in the range of $3.51 to $3.61.
  • Full-year 2024 revenue is projected to be in the range of $2.62 billion to $2.63 billion.
  • Adjusted net income per diluted share for the full year 2024 is expected to be between $15.21 and $15.31.
  • Guidance assumes an average U.S. retail fuel price of $3.28 per gallon for Q4 2024.

Headwinds

  • Guidance shortfall was primarily within the Mobility business due to declining fuel prices and same-store sales.
  • An isolated unplanned charge impacted finance fee revenue.
  • The outlook for the remainder of the year has been reduced to reflect third-quarter performance.
  • Expectation that lower fuel prices and volume softness with Mobility customers will continue into the fourth quarter.
  • Guidance excludes further share repurchases and any further shares delivered at settlement under the accelerated share repurchase agreement.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

-1.8%

Avg return

Earnings day

-3.3%

Avg return

5 days after

-2.2%

Avg return

30 days after

39%

27 / 69 earnings

Positive

+10.0%

Q3 2022

Best reaction

-18.7%

Q3 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.0%-17.6%-18.7%
Q4 2025-0.2%+11.5%+12.2%
Q3 2025-1.6%-3.9%-3.7%
Q2 2025-0.4%-3.5%-3.1%
Q1 2025-6.8%-6.2%+2.0%
Q4 2024-18.7%-17.1%-15.0%
Q3 2024-16.0%-18.7%-13.0%
Q2 2024+0.9%+3.0%+3.8%
Q1 2024-7.2%-9.5%-19.5%
Q4 2023+4.8%+4.2%+13.1%
Q3 2023-9.5%-7.7%-2.8%
Q2 2023-4.3%-2.5%-4.5%
Q1 2023+1.7%-4.0%-2.9%
Q4 2022+7.9%+6.6%-3.5%
Q3 2022+10.0%+11.9%+10.8%
Q2 2022-2.4%-1.6%-5.8%
Q1 2022+1.3%+1.3%+3.1%
Q4 2021+2.9%+4.7%-2.7%
Q3 2021-18.7%-21.9%-28.4%
Q2 2021-6.5%-10.1%-9.2%
Q1 2021-9.5%-9.9%-13.6%
Q4 2020-5.2%-6.9%-4.4%
Q3 2020-5.3%+0.1%+35.9%
Q2 2020-7.0%-5.4%-3.7%
Q1 2020+2.7%-3.2%+35.4%
Q4 2019+5.4%+4.6%-38.4%
Q3 2019-5.5%-4.4%-1.3%
Q2 2019-7.3%-11.4%-6.2%
Q1 2019+0.1%-2.9%-9.2%
Q4 2018+2.6%-0.2%+8.7%
Q3 2018+4.1%+0.8%-7.6%
Q2 2018-1.7%-0.9%-0.3%
Q1 2018+4.5%+5.5%+10.2%
Q4 2017+8.8%+8.5%+6.9%
Q3 2017-0.5%-0.9%+2.7%
Q2 2017-2.1%-5.4%-6.3%
Q1 2017-5.0%-7.1%-3.2%
Q4 2016-6.6%-6.9%-10.7%
Q3 2016+6.6%+0.1%+3.0%
Q2 2016-1.4%-4.6%+2.9%
Q1 2016+4.1%
Q4 2015-11.9%
Q3 2015-3.4%
Q2 2015-4.9%
Q1 2015-0.4%
Q4 2014+0.7%
Q3 2014+3.0%
Q2 2014+2.7%
Q1 2014+0.6%
Q4 2013+5.3%
Q3 2013+6.9%
Q2 2013+4.6%
Q1 2013-9.3%
Q4 2011-0.1%
Q4 2012-5.9%
Q3 2012+2.8%
Q2 2012+2.7%
Q1 2012+0.7%
Q3 2011-1.5%
Q2 2011-4.1%
Q1 2010-1.8%
Q1 2011+1.5%
Q4 2008-2.4%
Q4 2010-2.4%
Q3 2009-2.6%
Q3 2010-2.6%
Q2 2009-5.0%
Q4 2009-5.0%
Q2 2010-5.0%

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