WEX raised its full-year outlook after a 14 percent revenue rise, with fuel prices carrying part of it
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WEX raised its full-year outlook. The payments company reported second-quarter revenue of $753.5m, up 14.2 percent from a year earlier, with GAAP diluted earnings of $3.11 a share, up 57.1 percent, and adjusted diluted earnings of $5.35, up 35.4 percent. Adjusted operating margin was 39.6 percent.
Not all of the revenue rise came from doing more business. The company said $63.8m of the increase came from higher fuel prices and $2.1m from currency, which are movements it does not control and which flatter a fleet-payments top line whenever pump prices climb. Strip those out and the underlying growth is smaller than the headline.
WEX returned capital as it grew. It repurchased about $60m of stock in the quarter and about $33m more through July 20, and it lifted full-year revenue guidance to between $2.86bn and $2.90bn and adjusted earnings guidance to between $19.68 and $20.08 a share. Chief Executive Melissa Smith said the results again exceeded the company's own ranges.
