WEX Inc. WEX reported impressive fourth-quarter 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate. The stock has gained 17% since the release of results on Feb. 5 in response to the better-than-expected results.

See Zacks Earnings Calendar to stay ahead of market-making news.

Quarterly adjusted earnings of $3.57 per share surpassed the Zacks Consensus Estimate by 0.9% but decreased 6.5% from the year-ago quarter. Revenues of $636.5 million beat the consensus estimate by 0.7% but declined 4% on a year-over-year basis.

Segmental Revenues of WEX

The Mobility segment’s revenues decreased 1.4% from the year-ago quarter to $345.2 million and surpassed our estimate of $334.5 million. Incremental investments in sales and marketing, mainly in digital marketing, drove signings, which resulted in this segment’s revenue growth. The Corporate Payments segment’s revenues were $104.3 million, down 22.7% from the fourth quarter of 2023. They missed our estimate of $122.8 million.

The Benefits segment’s revenues increased 4.9% year over year to $186.9 million, beating our estimate of $175.8 million. Strong core market dynamics that grew the SaaS accounts have fueled this segment’s revenue growth.

WEX’s Operating Results

Adjusted operating income declined 6.5% to $269.8 million from the year-ago quarter and surpassed our estimate of $246.1 million. The adjusted operating income margin of 42.4% declined 110 basis points year over year, beating our projected 38.9%.

Balance Sheet & Cash Flow of WEX

WEX exited the quarter with cash and cash equivalents of $595.8 million compared with $682.6 million at the end of the preceding quarter. The long-term debt was $3.1 billion, flat with the previous quarter.

The company generated $638.4 million in cash from operating activities in the quarter. The adjusted free cash flow was $169.5 million. Capital expenditure totaled $38.7 million.

Guidance

For the first quarter of 2025, WEX anticipates revenues in the range of $625-$640 million. The midpoint ($632.5 million) of the guided range is above the current Zacks Consensus Estimate of $628.4 million. Adjusted net income is expected between $3.35 and $3.50 per share. The guided range is below the Zacks Consensus estimate of $3.72.

For 2025, revenues are expected to be between $2.60 billion and $2.66 billion. The midpoint ($2.63 billion) of the guided range is above the current Zacks Consensus Estimate of $2.61 billion. Adjusted net income is now expected to be between $14.65 and $15.25 per share. The guided range is below the Zacks Consensus estimate of $16.49.

Currently, WEX carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Earnings Snapshots

Gartner, Inc. IT reported better-than-expected fourth-quarter 2024 results.

IT’s adjusted earnings per share of $5.6 beat the Zacks Consensus Estimate by 69.3% and increased 79.3% from the year-ago quarter. Revenues of $1.7 billion surpassed the consensus estimate by 1.8% and improved 8.2% year over year.

Broadridge Financial Solutions, Inc. BR posted impressive second-quarter fiscal 2025 results.

BR’s adjusted earnings of $1.6 per share outpaced the consensus mark by 12.2% and surged 69.6% from the year-ago quarter. Total revenues of $1.6 billion surpassed the consensus mark by 3% and rose 12.8% year over year.

WM WM reported mixed fourth-quarter 2024 results.

WM’s quarterly adjusted earnings of $1.7 per share missed the consensus mark by 5% and declined 2.3% year over year. Total revenues of $5.9 billion surpassed the consensus mark by a slight margin and grew 13% from the year-ago quarter.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Broadridge Financial Solutions, Inc. (BR) : Free Stock Analysis Report

Waste Management, Inc. (WM) : Free Stock Analysis Report

Gartner, Inc. (IT) : Free Stock Analysis Report

WEX Inc. (WEX) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research