WEX beats Q4 adjusted EPS estimates

Overview

• Global commerce platform's Q4 revenue rose 5.7%, driven by Benefits and Corporate Payments

• Adjusted EPS for Q4 beat analyst expectations

• Revenue increase included favorable impact from fuel prices and foreign exchange rates

Outlook

• WEX expects Q1 2026 revenue between $650 mln and $670 mln

• Company anticipates full-year 2026 revenue between $2.70 bln and $2.76 bln

• WEX projects full-year 2026 adjusted EPS between $17.25 and $17.85

Result Drivers

• BENEFITS SEGMENT - Revenue increased 9.6% due to growth in SaaS accounts and HSA custodial cash assets

• CORPORATE PAYMENTS - Revenue rose 17.8% driven by increased purchase volume and total volume processed

• FUEL AND FX IMPACT - Revenue increase included favorable impacts from fuel prices and foreign exchange rates

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy."

• Wall Street's median 12-month price target for WEX Inc is $172.00, about 19.2% above its February 3 closing price of $144.28

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nBw83ktfha

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