Wex shares slide 5% as Q3 results miss estimates, guidance disappoints

PORTLAND, Maine - Wex Inc. (NYSE:WEX (NYSE:WEX )) shares fell sharply by 5.65% on Thursday after the global commerce platform reported third-quarter earnings that missed analyst expectations and provided weaker-than-anticipated guidance for the fourth quarter and full year 2024.

The company reported adjusted earnings per share of $4.35 for the third quarter, falling short of the $4.41 consensus estimate. Revenue came in at $665.5 million, significantly below the analyst forecast of $693.01 million.

Wex's fourth-quarter outlook also disappointed investors. The company expects adjusted EPS between $3.51 and $3.61, well below the $4.26 consensus. Revenue guidance of $630-640 million for Q4 also missed the $673 million analyst estimate.

For the full year 2024, Wex lowered its guidance, now projecting adjusted EPS of $15.21-$15.31, down from its previous forecast and below the $16.04 consensus. The company also cut its full-year revenue outlook to $2.62-2.63 billion, missing the $2.68 billion analyst estimate.

"While we faced some headwinds in the third quarter, we remain focused on our strategic initiatives and operational efficiency," said Melissa Smith, WEX's Chair, CEO, and President. "We're taking proactive steps to address the challenges in the current business environment."

Despite the setbacks, Wex reported that its total volume across all segments increased 9% YoY to $60.1 billion in the second quarter. The company also highlighted its Benefits segment's 13% YoY revenue growth and an acceleration in its Mobility segment's growth rate during Q2.

Wex continues to invest in its electric vehicle offerings and is leveraging AI capabilities to drive innovation. The company also plans to enter into a $300 million accelerated share repurchase agreement in the near future, reflecting confidence in its long-term growth potential despite near-term challenges.

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Source: Investing.com