The 10-second takeaway
For the quarter ended March 31 (Q1), WEX met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share expanded. GAAP earnings per share increased significantly.
Margins grew across the board.
WEX reported revenue of $165.4 million. The nine analysts polled by S&P Capital IQ expected a top line of $166.0 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $140.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.98. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.96 per share. Non-GAAP EPS of $0.98 for Q1 were 7.7% higher than the prior-year quarter's $0.91 per share. GAAP EPS of $0.73 for Q1 were 24% higher than the prior-year quarter's $0.59 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 71.8%, much better than the prior-year quarter. Operating margin was 36.6%, 870 basis points better than the prior-year quarter. Net margin was 17.3%, 70 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $182.7 million. On the bottom line, the average EPS estimate is $1.11.
Next year's average estimate for revenue is $728.8 million. The average EPS estimate is $4.45.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 82 members out of 92 rating the stock outperform, and 10 members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give WEX a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on WEX is hold, with an average price target of $74.75.
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