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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.
WEX
WEX
WEX Revenue by Segment
Revenue by Segment
Mobility Revenue
CapyFin.comCorporate Payments Revenue
CapyFin.comBenefits Revenue
CapyFin.com 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.
- Adjusted net income guidance excludes several items that may have a significant impact on financial results.
- Recent trends in the travel environment are modestly revising the outlook for the second half of 2024.
- The company is taking actions to drive further operational efficiency.
Revenue & Expenses
Visualization of income flow from segment revenue to net income