WEX - WEX rallies after 41% growth in volumes guidance lift: Q3 Earnings Beat

October, 27 2022 11:23 AM WEX Inc.

WEX ( NYSE: WEX ) shares rose sharply after the company posted beat on both lines and raised guidance for the full-year in Q3 2022 results .
Revenue of $616.1M (+27.6% Y/Y) beats by $28.24M. It includes a $55.7M favorable impact from fuel prices and spreads and an $11.7M negative impact from foreign exchange rates.
Total volume across the company totaled $57.5B, an increase of 41% year-over-year.
Fleet Solutions segment payment processing transactions increased 8%; Average number of vehicles serviced rose 13%; Health and Employee Benefit Solutions’ average number of Software-as-a-Service ((SaaS)) accounts in the U.S. grew 8%; and Travel and Corporate Solutions’ segment purchase volume was up 61% from a year ago quarter.
GAAP Operating margin was 3.5%; Adjusted operating income margin was 39.1% compared to 37% from in Q3 2021.
Non-GAAP EPS of $3.51 beats by $0.09.
WEX adjusted free cash flow was $406.8M for the quarter.
Q4 2022 Guidance: The company expects revenue in the range of $570-$580M vs. consensus of $564.17M and adjusted net income in the range of $3.15 to $3.25 per diluted share vs. consensus of $3.20
FY 2022 Guidance: Revenue forecasted to be between $2.302-$2.312B, up from prior guidance of $2.25-$2.28B, vs. consensus of $2.27B.
Non-GAAP EPS expected between $13.24-$13.34, up from prior outlook range of $13.05-$13.30, vs. consensus of $13.21.
WEX shares are up 6% on Thursday.

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