Wright Express Australia, a subsidiary of WEX Inc. ( WEX ), has inked a new company-wide deal with Caltex Australia, for accepting the Wright Express Fuel cards in most of Caltex locations.
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 services.
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 company's guidance.
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 Qiwi plc ( QIWI ), Alliance Data Systems Corp. ( ADS ) and Fiserv, Inc. ( FISV ). While Qiwi plc sports a Zacks Rank #1 (Strong Buy), both Alliance Data and Fiserv carry a Zacks Rank #2 (Buy).