Examining the Future: WEX's Earnings Outlook
WEX (NYSE:WEX) is set to give its latest quarterly earnings report on Wednesday, 2025-07-23. Here's what investors need to know before the announcement.
Analysts estimate that WEX will report an earnings per share (EPS) of $3.44.
Anticipation surrounds WEX's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Historical Earnings Performance
Last quarter the company beat EPS by $0.11, which was followed by a 6.85% drop in the share price the next day.
Here's a look at WEX's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 3.40 | 3.55 | 4.42 | 3.80 |
| EPS Actual | 3.51 | 3.57 | 4.35 | 3.91 |
| Price Change % | -7.000000000000001% | -19.0% | -1.0% | 5.0% |
Stock Performance
Shares of WEX were trading at $154.18 as of July 21. Over the last 52-week period, shares are down 10.13%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.
Analyst Observations about WEX
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding WEX.
The consensus rating for WEX is Neutral, derived from 4 analyst ratings. An average one-year price target of $140.75 implies a potential 8.71% downside.
Analyzing Analyst Ratings Among Peers
In this analysis, we delve into the analyst ratings and average 1-year price targets of Shift4 Payments, Sezzle and Euronet Worldwide, three key industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Shift4 Payments, with an average 1-year price target of $114.8, suggesting a potential 25.54% downside.
- Analysts currently favor an Outperform trajectory for Sezzle, with an average 1-year price target of $185.0, suggesting a potential 19.99% upside.
- Analysts currently favor an Buy trajectory for Euronet Worldwide, with an average 1-year price target of $122.33, suggesting a potential 20.66% downside.
Comprehensive Peer Analysis Summary
The peer analysis summary outlines pivotal metrics for Shift4 Payments, Sezzle and Euronet Worldwide, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| WEX | Neutral | -2.47% | $366.60M | 6.22% |
| Shift4 Payments | Outperform | 19.92% | $257M | 2.07% |
| Sezzle | Outperform | 123.32% | $74.55M | 33.86% |
| Euronet Worldwide | Buy | 6.83% | $354.50M | 3.03% |
Key Takeaway:
WEX ranks at the bottom for Revenue Growth with a negative rate, while its peers show positive growth rates. In terms of Gross Profit, WEX is at the top among its peers. However, WEX has the lowest Return on Equity compared to its peers. Overall, WEX's performance is mixed when compared to its peers in these key financial metrics.
Unveiling the Story Behind WEX
WEX Inc is a provider of corporate payment solutions. The company operates three business segments: Mobility, Benefits, and Corporate Payments. Mobility segment, the top segment by revenue, provides fleet vehicle payment solutions, transaction processing, and information management services for commercial and government fleets. The Corporate Payments segment offers business-to-business payment processing and transaction monitoring services. The Benefits segment generates revenue from healthcare payment products and its consumer-directed software platform. The company's prime end market is the United States of America.
WEX: A Financial Overview
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Revenue Growth: WEX's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2025, the company experienced a revenue decline of approximately -2.47%. This indicates a decrease in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: WEX's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 11.23%, the company may face hurdles in effective cost management.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 6.22%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): WEX's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.52%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: With a high debt-to-equity ratio of 6.89, WEX faces challenges in effectively managing its debt levels, indicating potential financial strain.
To track all earnings releases for WEX visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
