WEX Adjusts FY 2025 Earnings Forecast

WEX (NYSE:WEX) announced an update to its earnings guidance for the fiscal year 2025. The company provided a new earnings per share (EPS) estimate that ranges between 14.650 and 15.250. This is notably lower than the consensus estimate of 16.790. Additionally, WEX set revenue expectations between $2.6 billion and $2.7 billion, which is on par with the consensus revenue estimate of $2.7 billion.

Stock Performance

On the day of the announcement, WEX's stock saw an increase of 1.6%. During midday trading, shares rose by $3.03, reaching a price of $187.09. The trading volume was recorded at 512,417 shares, which surpasses the average volume of 367,886 shares. The company maintains a quick ratio of 1.04, a current ratio of 1.04, and a debt-to-equity ratio of 1.87. Currently, WEX's 50-day simple moving average is $179.15, with a 200-day simple moving average of $186.23. Over the past year, the stock hit a low of $165.51 and a high of $244.04. As of now, WEX has a market capitalization of $7.44 billion, a P/E ratio of 23.74, a PEG ratio of 1.50, and a beta of 1.58.

WEX last reported its quarterly earnings on February 5th, delivering an EPS of $3.13 for the quarter, which exceeded analyst expectations of $2.97 by $0.16. The company also achieved a return on equity of 31.35% and a net profit margin of 12.45%. Analysts project an overall EPS of 13.08 for the current fiscal year.

Analyst Opinions

Recent analyst opinions regarding WEX's stock have varied. Bank of America raised its target price for WEX shares from $238.00 to $255.00, maintaining a "buy" rating as of October 15th. Conversely, Wolfe Research changed its rating from "outperform" to "peer perform" on October 28th. Robert W. Baird lowered their price target from $285.00 to $230.00, holding an "outperform" rating for the stock on October 25th. Wells Fargo also adjusted its target from $200.00 to $180.00, giving it an "equal weight" rating. Additionally, Citigroup downgraded WEX from a "buy" to a "neutral" rating, decreasing the target price from $260.00 to $190.00 in a report dated January 14th. In total, eight analysts have rated the stock as a hold, five as a buy, and one as a strong buy, leading to a consensus rating of "Moderate Buy" with an average target price of $217.73 according to MarketBeat.com.

Insider Activity

In other corporate news, WEX's Chief Operating Officer, Robert Joseph Deshaies, sold 175 shares on November 29th at an average price of $189.44, totaling $33,152. Following this transaction, he holds 7,582 shares which are valued at about $1,436,334.08. This sale reflects a 2.26% reduction in his holdings. The details of this transaction were recorded in a filing with the Securities and Exchange Commission (SEC). Company insiders currently own about 1.10% of WEX's stock.

About WEX

WEX Inc. operates a commerce platform both in the United States and globally. The company's Mobility segment specializes in providing fleet vehicle payment solutions, transaction processing, and information management services. Additionally, WEX offers services for account activation and retention, billing inquiries, credit and collections, merchant services, analytics, and various ancillary offerings.

WEX, Earnings, Stock