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Jun 30, 2024
WEX Q2 2024 Earnings Report
WEX achieved record revenue and adjusted earnings per share exceeded guidance, demonstrating consistent financial strength amidst economic challenges.
Key Takeaways
WEX reported a strong second quarter in 2024, with revenue reaching a record $673.5 million, an 8% increase year-over-year. Adjusted net income was $3.91 per diluted share, exceeding the high end of the guidance range. The company repurchased approximately $100 million of shares during the quarter and plans to enter into a $300 million accelerated share repurchase agreement.
Revenue increased by 8% year-over-year, reaching a record $673 million, driven by growth in the Benefits and Mobility segments.
GAAP net income was $1.83 per diluted share, while adjusted net income was $3.91 per diluted share, up 8% per diluted share from the previous year.
GAAP operating income margin was 25.0%, and adjusted operating income margin was 40.7%.
The company exceeded its goal of achieving $100 million of run rate savings six months earlier than expected and repurchased $100 million of shares.
Revenue by Segment
Forward Guidance
For Q3 2024, WEX expects revenue in the range of $688 million to $698 million and adjusted net income in the range of $4.42 to $4.52 per diluted share. For the full year 2024, the company now expects revenue in the range of $2.68 billion to $2.72 billion and adjusted net income in the range of $15.98 to $16.38 per diluted share.
Positive Outlook
- Revenue guidance for Q3 2024 is between $688 million and $698 million.
- Adjusted net income guidance for Q3 2024 is between $4.42 and $4.52 per diluted share.
- Full year 2024 revenue is expected to be in the range of $2.68 billion to $2.72 billion.
- Full year 2024 adjusted net income is expected to be in the range of $15.98 to $16.38 per diluted share.
- Share count assumptions include the effect of approximately $70 million of shares purchased during the month of July and the expected effect of entering into a $300 million accelerated share repurchase transaction.
Challenges Ahead
- Guidance is based on assumed average U.S. retail fuel prices of $3.65 and $3.61 per gallon for the third quarter and full year 2024, respectively.
- Guidance assumes approximately 40.8 million and 41.4 million fully diluted shares outstanding for the third quarter and the full year, respectively.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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