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WEX (WEX) to Report Third-Quarter Earnings: What's in Store?

WEX Inc. WEX will report third-quarter 2020 results on Oct 30, before the bell.

The company’s earnings surprise history hasn’t been impressive. It delivered a  negative earnings surprise of -6.4% in the last four quarters, on average.

Q3 Expectations

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $394.3 million, indicating a decline of 14.3% from the year-ago reported figure. Weak volumes across Fleet Solutions, and Travel and Corporate Solutions segments due to restrictions on travel and business are likely to have weighed on the top line.

The consensus estimate for Fleet Solutions segment’s revenues stands at $236 million, indicating a year-over-year decline of 15%. For Travel and Corporate Solutions’ revenues, the consensus mark is pegged at $66 million, reflecting a year-over-year decline of 33.3%. In the second quarter of 2020, WEX’s revenues declined 21.4% year over year.

The Zacks Consensus Estimate for earnings in the to-be-reported quarter is pegged at $1.77, indicating a decline of 31.6% from the year-ago reported figure. In the second quarter of 2020, WEX’s adjusted EPS declined 46.9% year over year

What Our Model Says

Our proven model predicts an earnings beat for WEXthis time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

WEXhas an Earnings ESP of +1.78% and a Zacks Rank #3.

WEX Inc. Price and EPS Surprise

WEX Inc. Price and EPS Surprise

WEX Inc. price-eps-surprise | WEX Inc. Quote

Other Stocks That Warrant a Look

Here are a few other stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these too have the right combination of elements to beat on earnings his season.

Aptiv APTV has an Earnings ESP of +13.04% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Republic Services RSG has an Earnings ESP of +1.93% and a Zacks Rank #3.

Waste Connections WCN has an Earnings ESP of +0.32% and a Zacks Rank #3.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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