WEX Inc. (WEX), through joint venture WEX Europe Services Limited, acquired the assets of ExxonMobil’s (XOM) European commercial fuel card (Esso Card). In July, the financial transaction service provider inked the acquisition deal.
The takeover includes ExxonMobil’s commercial fleet fuel card program which includes operations, funding, pricing and sales and marketing in nine European countries. Addition of Esso Card portfolio will therefore widen WEX’s European exposure and boost the global footprint.
In addition, the purchase transaction includes a long-term supply agreement to serve the current and future Esso Card customers.
WEX has been continually trying to enhance its operational performance and has taken several initiatives to expand its products and services. In October, WEX inked a long-term care contract with Sinclair Oil Corp. (Sinclair). The 10-year contract will give WEX the exclusive right to become the fleet card provider of Sinclair’s Fleet Track Card program. Also, WEX Fleet One, a division of WEX, launched a fuel card named All Roads that is accepted at truck stops and convenience stores.
The company has been witnessing upward estimate revisions following the solid third-quarter performance that led to 13.9% positive earnings surprise. The Zacks Consensus Estimate for 2014 moved north by 1.2% to $4.87 as estimates were revised higher over the last 60 days.
With optimism surrounding the company’s endeavors to ramp up its operations, and in turn the results, we expect analysts to further raise their estimate exerting upward pressure on the Zacks Rank. WEX presently carries a Zacks Rank #3 (Hold).
Better-ranked financial transaction service providers worth taking a look at include Global Payments Inc. (GPN), Total System Services, Inc. (TSS) and The Western Union Co. (WU). All these stocks sport a Zacks Rank #2 (Buy).
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