Exploring WEX's Earnings Expectations

WEX WEX will release its quarterly earnings report on Thursday, 2024-10-24. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate WEX to report an earnings per share (EPS) of $4.47.

Anticipation surrounds WEX's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Historical Earnings Performance

Last quarter the company beat EPS by $0.11, which was followed by a 4.83% increase in the share price the next day.

Here's a look at WEX's past performance and the resulting price change:

Performance of WEX Shares

Shares of WEX were trading at $211.33 as of October 22. Over the last 52-week period, shares are up 28.33%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Opinions on WEX

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on WEX.

Analysts have provided WEX with 5 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $211.0, suggesting a potential 0.16% downside.

Comparing Ratings with Peers

The following analysis focuses on the analyst ratings and average 1-year price targets of Shift4 Payments, Euronet Worldwide and Jack Henry & Associates, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• The consensus among analysts is an Outperform trajectory for Shift4 Payments, with an average 1-year price target of $101.92, indicating a potential 51.77% downside.
• As per analysts' assessments, Euronet Worldwide is favoring an Buy trajectory, with an average 1-year price target of $123.0, suggesting a potential 41.8% downside.
• The consensus among analysts is an Neutral trajectory for Jack Henry & Associates, with an average 1-year price target of $189.6, indicating a potential 10.28% downside.

Peer Metrics Summary

Within the peer analysis summary, vital metrics for Shift4 Payments, Euronet Worldwide and Jack Henry & Associates are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

WEX ranks in the middle among its peers for revenue growth, with a growth rate of 8.40%. It ranks at the bottom for gross profit at $409.80M. In terms of return on equity, WEX is also at the bottom with a rate of 4.32%. Overall, WEX's performance is average compared to its peers in the analysis.

Unveiling the Story Behind WEX

WEX Inc is a provider of corporate payment solutions. The company operates three business segments: Mobility, Benefits, and Corporate Payments. Mobility segment, the largest segment by revenue, provides fleet vehicle payment solutions, transaction processing, and information management services for commercial and government fleets. The Corporate Payments segment offers business-to-business payment processing and transaction monitoring services. The Benefits segment generates revenue from healthcare payment products and its consumer-directed software platform. Wex's largest end market is the United States of America.

WEX's Economic Impact: An Analysis

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining WEX's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 8.4% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 11.43%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): WEX's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 4.32%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): WEX's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.54%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: WEX's debt-to-equity ratio surpasses industry norms, standing at 2.36. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

To track all earnings releases for WEX visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.