Trump announces trade deal with EU following months of negotiations
PORTLAND, Maine - Wex Inc. (NYSE:WEX) shares tumbled 14.2% Thursday after the global commerce platform reported fourth-quarter earnings that missed analyst expectations and provided weaker-than-anticipated guidance for the upcoming quarter and full year.
The company posted adjusted earnings per share of $3.57 for the fourth quarter, falling short of the $3.61 analyst estimate. Revenue declined 4% YoY to $637 million, below the consensus forecast of $643.1 million.
Wex’s outlook also failed to meet Wall Street projections. For the first quarter of 2025, the company expects revenue between $625 million and $640 million, with adjusted EPS of $3.35 to $3.50. Both ranges came in below analyst estimates of $661.2 million in revenue and $3.78 in EPS.
Full-year 2025 guidance was similarly disappointing, with Wex forecasting revenue of $2.60 billion to $2.66 billion and adjusted EPS of $14.65 to $15.25. Analysts had been expecting $2.715 billion in revenue and $16.79 in EPS for the year.
"As we enter 2025, we believe that our targeted investments in product innovation and sales expansion will set the stage for WEX’s long-term success," said Melissa Smith, WEX’s Chair, CEO, and President. "We anticipate that these initiatives will enhance our competitive edge and ultimately accelerate growth."
The company’s fourth-quarter results were impacted by lower fuel prices and spreads, which had a $26.6 million unfavorable effect on revenue. Total (EPA:TTEF) payment volume across all segments decreased 6% YoY to $53 billion.
Despite the earnings miss and stock decline, Wex highlighted some positive metrics, including a 3% increase in the average number of vehicles serviced to 19.8 million and 2% growth in Benefits’ average number of SaaS accounts to 20.4 million.
Analysts were cautious about the stock following results.
William Blair analyst Andrew Jeffrey stated he is "losing faith" and questions the company’s investments in its payment business. "We contend that these investments face a high risk of throwing good money after bad, and we think management risks misallocating capital," he commented.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.