WEX (NYSE:WEX) Posts Strong Earnings, Exceeds Analyst Expectations by $0.16 EPS

WEX (NYSE:WEX - Get Free Report) published its quarterly earnings results on Wednesday. The business services provider reported earnings per share (EPS) of $3.13, surpassing the consensus estimate of $2.97 by $0.16, according to Zacks. Additionally, WEX exhibited a net margin of 12.45% and a return on equity of 31.35%. The company also provided updated guidance for Q1 2025, forecasting EPS between 3.350 and 3.500, and for the fiscal year 2025, between 14.650 and 15.250 EPS.

WEX Stock Performance

Following the earnings announcement, shares of WEX increased by 1.6%, trading up $3.03 during Wednesday's session, reaching a price of $187.09. The trading volume was 512,417 shares, notably higher than the average volume of 367,886 shares. Over the past year, WEX's stock has experienced a low of $165.51 and a high of $244.04. The company has a market capitalization of $7.44 billion, with a price-to-earnings ratio of 23.74, a P/E/G ratio of 1.50, and a beta of 1.58. Its debt-to-equity ratio stands at 1.87, while both the quick ratio and current ratio are at 1.04.

Analyst Revisions and Stock Ratings

Several analysts have recently revised their ratings and price targets for WEX shares. Jefferies Financial Group raised their target price from $180.00 to $190.00, maintaining a "hold" rating as of January 22nd. Keefe, Bruyette & Woods decreased their target from $247.00 to $220.00, also providing an "outperform" rating in a report released on January 6th. Robert W. Baird lowered their price target from $285.00 to $230.00 with an "outperform" rating in late October. Citigroup downgraded the stock from "buy" to "neutral," cutting their target price from $260.00 to $190.00, while Barclays set their target at $200.00, down from a prior $207.00. Currently, eight analysts rated the stock as a hold, five suggested a buy, and one issued a strong buy rating. According to MarketBeat, the consensus rating for WEX is "Moderate Buy" with an average price target of $217.73.

Insider Activity at WEX

In related developments, COO Robert Joseph Deshaies sold 175 shares of WEX on November 29th at an average price of $189.44, totaling $33,152.00. After this transaction, Deshaies holds 7,582 shares in the company, valued at approximately $1,436,334.08, which accounts for a 2.26% decrease in his ownership. This insider transaction was disclosed to the Securities and Exchange Commission (SEC).

About WEX Inc

WEX Inc operates a commerce platform that provides various business services in the United States and internationally. The Mobility segment focuses on fleet vehicle payment solutions, transaction processing, information management services, and additional offerings such as account activation and retention services, billing inquiries, and analytics solutions.

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