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What to Expect From WEX's Upcoming Fourth-Quarter Earnings
WEX WEX is scheduled to release its fourth-quarter 2022 results on Feb 9 before the market open.
The company has had a decent earnings surprise history, outperforming the Zacks Consensus Estimate in all four trailing quarters. The company has an average earning surprise history of 5.49%.
The Zacks Consensus Estimate for earnings is $3.21 which has been kept constant for the last 30 days.
WEX Inc. Price and EPS Surprise
WEX Inc. price-eps-surprise | WEX Inc. Quote
Q4 Expectations
The Zacks Consensus Estimate for the top line is currently pegged at $575.79 million, indicating an increase of 15.7% from the year-ago actual figure. The expected increase can be attributed to the company’s segmental revenue growth.
Revenue generated from fleet solutions are expected to go up by 16% to $356 million driven by strong volumes from new customer wins and renewals. Revenue generated from Travel and Corporate solution is expected to be $102 million, up by around 24.4% on a year-over-year basis owing to high consumer travel demand. Health and Employee Benefit Solutions’ revenues are expected to be at $124 million registering year-over-year growth of 13.8%.
Fleet Solutions segment’s payment processing transactions are expected to be up 13.7% to $166 million compared to the year-ago reported figure. Travel and Corporate Solutions' purchase volume is expected to climb 69% year over year to $18.4 billion. The purchase volume of Health and Employee Benefit Solutions is anticipated to go up by 15.3%.
The bottom line is expected to have been negatively impacted by an increase in expenses. The Zacks Consensus Estimate of the bottom line is pegged at $3.21 which is 24.4% more than the year-over-year figure.
What Our Model Says
Our proven model predicts an earnings beat for WEX this 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 before they're reported with our Earnings ESP Filter.
Gartner has an Earnings ESP of +0.18% and a Zacks Rank of 3.
Other Stocks to Consider
Besides WEX, here are a few stocks from the broader Business Services sector, which according to our model, have the right combination of elements to beat on their fourth-quarter 2022 earnings.
S&P Global SPGI currently has a Zacks Rank of 3 and a positive earnings ESP of 0.17%. The fourth-quarter results are scheduled on Feb 9 before the market open.
The Zacks Consensus Estimate for SPGI’s bottom line is currently pegged at $2.47 per common stock which is 21.6% down from the year-ago reported figures. The Zacks Consensus Estimate for the top line is $2.86 billion, up from $2.09 billion reported in the previous year.
Avis Budget Group (CAR) currently has a Zacks Rank of 3 and a positive earnings ESP of 7.40%. The fourth-quarter results are scheduled on Feb 13 after the market close. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate of $6.50 has been revised upward by 1.3% in the past 60 days. The Zacks Consensus Estimate of the revenue is $2.71 billion up from $2.57 billion reported in the previous year. CAR has an average surprise rate of 67.2% in the previous four quarters.
FleetCor Technologies FLT currently has a Zacks Rank of 3 and a positive earnings ESP of 0.19%. The fourth-quarter results are scheduled on Feb 8 after the market close.
The Zacks Consensus Estimate of $3.91 up from the year-ago reported $3.72. The Zacks Consensus Estimate for revenues is $873.39 million up from $802.26 million reported in the previous year. FLT has an average surprise rate of 3.8% in the previous four quarters.
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FleetCor Technologies, Inc. (FLT) : Free Stock Analysis Report
WEX Inc. (WEX) : Free Stock Analysis Report
S&P Global Inc. (SPGI) : Free Stock Analysis Report
