WEX Q3 2024 Earnings Report
Key Takeaways
WEX Inc. reported a 2% year-over-year increase in revenue, reaching a record $665 million for the third quarter of 2024. GAAP net income increased to $102.9 million, or $2.52 per diluted share, while adjusted net income was $177.5 million, or $4.35 per diluted share. The company spent $370 million on share repurchases during the quarter.
Revenue increased by 2% year-over-year to a record $665 million, driven by growth in the Benefits and Mobility segments.
GAAP net income increased to $102.9 million, or $2.52 per diluted share.
Adjusted net income reached $177.5 million, or $4.35 per diluted share, a 7% increase per diluted share year-over-year.
The company repurchased $370 million worth of shares in Q3.
WEX
WEX
Forward Guidance
For Q4 2024, WEX anticipates revenue between $630 million and $640 million, with adjusted net income per diluted share ranging from $3.51 to $3.61. The full-year 2024 revenue is projected to be in the range of $2.62 billion to $2.63 billion, and adjusted net income per diluted share is expected to be between $15.21 and $15.31.
Positive Outlook
- Revenue guidance for Q4 2024 is between $630 million and $640 million.
- Adjusted net income per diluted share for Q4 2024 is expected to be in the range of $3.51 to $3.61.
- Full-year 2024 revenue is projected to be in the range of $2.62 billion to $2.63 billion.
- Adjusted net income per diluted share for the full year 2024 is expected to be between $15.21 and $15.31.
- Guidance assumes an average U.S. retail fuel price of $3.28 per gallon for Q4 2024.
Challenges Ahead
- Guidance shortfall was primarily within the Mobility business due to declining fuel prices and same-store sales.
- An isolated unplanned charge impacted finance fee revenue.
- The outlook for the remainder of the year has been reduced to reflect third-quarter performance.
- Expectation that lower fuel prices and volume softness with Mobility customers will continue into the fourth quarter.
- Guidance excludes further share repurchases and any further shares delivered at settlement under the accelerated share repurchase agreement.