Wright Express Australia, a subsidiary of
), has inked a new company-wide deal with Caltex Australia, for
accepting the Wright Express Fuel cards in most of Caltex
Caltex is an established and leading transport fuel supplier and
convenience retailer catering to the whole of Australia.
WEX's Wright Express Australia helps global companies across a
wide spectrum of industries to grow their business. It offers
them prepaid and corporate payment solutions, delivers powerful
fleet, information management programs and transaction processing
Per the agreement, Caltex will accept the Motorpass and
Motorcharge fuel cards issued by WEX's Wright Express Australia.
These cards are widely accepted across Australia and also at a
few Caltex sites. However, the new deal extends the usage with
them being accepted in many of the Caltex's company-operated
locations as well as its resellers and franchise locations.
Following the deal, Wright Express Australia is likely to gain a
boost in its cardholders' tally across Australia. This will help
consolidate its foothold in the geographically dispersed nation
post the joining of hands with the well-established Caltex. These
factors, in turn, should translate into a key driver of top-line
growth in the upcoming quarters for Wright Express Australia.
In its last reported quarter, WEX reported total revenue of
$191.5 million which increased nearly 19% year over year.
Based on its solid results in the last reported quarter, WEX
raised the 2013 net income guidance to $171-$174 million or
$4.37-$4.44 per share from $167-$171 million or $4.27-$4.37 per
share guided earlier. The Zacks Consensus Estimate for 2013 is
currently pegged at $4.41 per share, close to the mid-point of
WEX maintained a track record of delivering positive earnings in
all the last 4 quarters with an average beat of 3.4%. We wait to
see if it continues to maintain the momentum when it reports its
fourth quarter and full year 2013 results. The Zacks Consensus
estimate for fourth quarter is pegged at $1.09 per share,
translating to a year-over-year increase of 1.7%.
WEX presently holds a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Business Services space include
Alliance Data Systems Corp.
). While Qiwi plc sports a Zacks Rank #1 (Strong Buy), both
Alliance Data and Fiserv carry a Zacks Rank #2 (Buy).
ALLIANCE DATA (ADS): Free Stock Analysis
FISERV INC (FISV): Free Stock Analysis Report
QIWI PLC-ADR (QIWI): Free Stock Analysis
WEX INC (WEX): Free Stock Analysis Report
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