NYSE$WEX

WEX Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

WEX's Q4 2019 earnings increased with double-digit top-line growth and strong operating leverage.

WEX Inc. reported a 15% increase in total revenue for Q4 2019, reaching $440.0 million. Net income attributable to shareholders increased to $54.4 million, or $1.24 per diluted share. Adjusted net income was $114.7 million, or $2.61 per diluted share, a 24% increase from the previous year.

  • Total revenue increased by 15% to $440.0 million.
  • Net income attributable to shareholders increased to $54.4 million, or $1.24 per diluted share.
  • Adjusted net income was $114.7 million, or $2.61 per diluted share, up 24% from the previous year.
  • Average number of vehicles serviced increased by 19%.

Headline financials

Total Revenue

$440M

Previous: $381M+15.4%
EPS (adj)

$2.61

Previous: $2.11+23.7%
Mobility transactions

126.7M

Previous: 115.9M+9.3%
Fuel dollars processed

$9.42B

No prior period
Net processing rate

1.1%

Previous: 1.4%-20.3%
Net late fee rate

0.7%

No prior period
Avg SaaS accounts

13.4M

Previous: 11.4M+17.0%
Corporate purchase volume

$9.64B

Previous: $8.21B+17.3%
Capital Expenditures

$23.8M

Previous: $33.7M-29.6%
Free Cash Flow

$434M

Previous: $183M+136.8%
Net Income

$64.8M

Previous: $23M+181.2%
Operating Income

$104M

Previous: $93.8M+10.7%
Gross Profit

$260M

Previous: $244M+6.7%
Cash & Equivalents

$811M

Previous: $541M+49.8%
Total Assets

$8.3B

Previous: $6.77B+22.6%
Stock-Based Comp

$12.2M

Previous: $9.23M+32.3%

Revenue & EPS history

WEX · Revenue · Quarterly

$440M

Q4 2019+15.4%vs Q4 2018
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

For the first quarter of 2020, WEX expects revenue in the range of $445 million to $455 million and adjusted net income in the range of $95 million to $99 million, or $2.15 to $2.25 per diluted share. For the full year 2020, the Company expects revenue in the range of $1,860 million to $1,900 million and adjusted net income in the range of $447 million to $464 million, or $10.15 to $10.55 per diluted share.

Tailwinds

  • Revenue in the range of $445 million to $455 million for Q1 2020.
  • Adjusted net income in the range of $95 million to $99 million for Q1 2020.
  • Revenue in the range of $1,860 million to $1,900 million for FY 2020.
  • Adjusted net income in the range of $447 million to $464 million for FY 2020.
  • Guidance is based on an assumed average U.S. retail fuel price of $2.69 and $2.70 per gallon for Q1 and FY 2020, respectively.

Headwinds

  • Guidance does not include any impacts from the recently announced acquisition of eNett and Optal.
  • First quarter and full year 2020 guidance is based on an assumed average U.S. retail fuel price of $2.69 and $2.70 per gallon, respectively.
  • Guidance assumes that fleet credit loss for the first quarter will be in the range of 15 to 20 basis points and the full year will be in the range of 13 to 18 basis points.
  • Guidance assumes approximately 44.0 million shares outstanding for the full year.
  • The Company's adjusted net income guidance, which is a non-GAAP measure, excludes several items that may have a significant impact on our financial results.

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 Q4 2019

Historical avgQ4 2019

-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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