WEX Inc. WEX reported impressive third-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.
However, the weak fourth-quarter guidance failed to impress the market, as the company’s shares have declined 3.6% since the earnings release.
For the fourth quarter of 2025, revenues are expected between $646 million and $666 million. The mid-point ($656 million) of the guided range is below the Zacks Consensus Estimate of $662.52 million. Adjusted net income per share is expected between $3.76 and $3.96. The mid-point of the guided range ($3.86) is below the Zacks Consensus Estimate of $3.89.
Quarterly adjusted earnings of $4.59 per share surpassed the Zacks Consensus Estimate by 3.2% and increased 5.52% from the year-ago quarter. Revenues of $692 million beat the consensus estimate by 1.4% but declined 4% on a year-over-year basis.
WEX Inc. Price, Consensus and EPS Surprise
WEX Inc. price-consensus-eps-surprise-chart | WEX Inc. Quote
The stock gained 22.5% over the last six months, outperforming the 12.9% decline of the industry and the 23.4% rise of the Zacks S&P 500 composite.
Segmental Revenues of WEX
The Mobility segment’s revenues increased 1% from the year-ago quarter to $360.8 million, beating our estimate of $346.4 million. The Corporate Payments segment’s revenues were $132.8 million, rising 4.7% from the third quarter of 2024 and missing our estimate of $134.2 million.
The Benefits segment’s revenues increased 9.2% year over year to $198.1 million, beating our estimate of $197.4 million.
WEX’s Operating Results
Adjusted operating income declined 6.7% to $273.5 million from the year-ago quarter but beat our estimate of $256.8 million. The adjusted operating margin of 39.5% outpaced our estimate of 37.9% but declined 450 basis points year over year.
Balance Sheet & Cash Flow of WEX
WEX exited the quarter with cash and cash equivalents of $812.9 million compared with $595.8 million in the December-end quarter of 2024. The long-term debt was $3.72 billion compared with $3.08 million in the December-end quarter of 2024.
The company used $159.6 million in cash from operating activities in the quarter. The adjusted free cash flow was $166.2 million. Capital expenditure totaled $35 million.
WEX’s 2025 Guidance
For 2025, revenues are expected between $2.63 billion and $2.65 billion compared with the prior mentioned $669-$689 million. The Zacks Consensus Estimate for the same is pegged at $2.65 billion. Adjusted net income per share is expected between $15.76 and $15.96 compared with the previously stated $15.37-$15.77. The mid-point of the guided range ($15.86) is below the Zacks Consensus Estimate of $15.89.
Currently, WEX carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Omnicom Group Inc. OMC reported impressive third-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.
Earnings of $2.15 per share beat the consensus estimate by 4.2% and increased 10.3% year over year. Total revenues of $4.04 billion surpassed the consensus estimate by 0.4% and rose 4% year over year. The increase in the top line was led by a 2.6% jump in revenues from organic growth.
ManpowerGroup, Inc. MAN posted impressive third-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.
Quarterly adjusted earnings per share came in at 83 cents, which beat the Zacks Consensus Estimate by 1.2% but decreased 35.7% year over year. Total revenues of $4.63 billion surpassed the consensus estimate by 0.6% and rose 2.3% year over year.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
