Wex, Inc. (WEX) Tops Q3 EPS by 2c, Beats on Revenues; FY17 EPS/Revenue Guidance Above Consensus

Wex, Inc. (NYSE: WEX) reported Q3 EPS of $1.43, $0.02 better than the analyst estimate of $1.41. Revenue for the quarter came in at $324 million versus the consensus estimate of $311.85 million.

Financial Guidance and Assumptions

The Company provides revenue guidance on a GAAP basis and earnings guidance on a non-GAAP basis, due to the uncertainty and indeterminate amount of certain elements that are included in reported GAAP earnings.

• For the full year 2017, the Company expects revenue in the range of $1.24 billion to $1.25 billion and adjusted net income in the range of $228 million to $231 million, or $5.31 to $5.38 per diluted share.
• For the fourth quarter of 2017, WEX expects revenue in the range of $317 million to $327 million and adjusted net income in the range of $60 million to $63 million, or $1.40 to $1.47 per diluted share.

"We continue to strengthen our underlying foundation for profitable growth. Through our debt refinancing finalized during the quarter, we stand to save an estimated $11 million of financing interest on an annual basis. This quarter we also added $100 million of capacity to our revolver, providing additional financial flexibility to help us navigate an evolving market. Importantly, our diligence and execution has started to pay off with regards to fraud losses from card skimming, which have continued to trend lower each month this quarter after hitting its high point last quarter, as we expected," said Roberto Simon, WEX\'s chief financial officer.

Fourth quarter 2017 guidance is based on an assumed average U.S. retail fuel price of $2.53 per gallon. The fuel price referenced above is based on the applicable NYMEX futures price. Our guidance assumes approximately 43 million shares outstanding for the fourth quarter.

The Company's guidance also assumes that fourth quarter 2017 fleet credit loss will range between 19 and 24 basis points.

GUIDANCE:

Wex, Inc. sees FY2017 EPS of $5.31-$5.38, versus the consensus of $5.31. Wex, Inc. sees FY2017 revenue of $1.24-1.25 billion, versus the consensus of $1.22 billion.

For earnings history and earnings-related data on Wex, Inc. (WEX) click here.

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