On Nov 13, Zacks Investment Research upgraded WEX Inc. (WEX) to a Zacks Rank #2 (Buy).
Why the Upgrade?
WEX Inc. has been witnessing rising earnings estimates on the back of strong third-quarter 2013 results and an enhanced guidance for 2013. Moreover, this financial transaction service provider delivered positive earnings surprises in the last 4 quarters with an average beat of 3.4%. The long-term expected earnings growth rate for this stock is 14.3%.
WEX Inc. reported third-quarter results on Oct 30. Non-GAAP earnings per share came in at $1.29, surpassing the Zacks Consensus Estimate of $1.20 by 7.5% and year-ago earnings of $1.08 by 19.4%.
Earnings were primarily aided by solid volume growth, strong Other Payments and favorable foreign exchange rate contributions. This in turn fueled 19.2% improvement in the top line that exceeded the Zacks Consensus Estimate by 1.3%.
Based on the solid third quarter performance, WEX Inc. raised the 2013 net income guidance to $171–$174 million or $4.37–$4.44 per share from $167–$171 million or $4.27–$4.37 per share guided earlier.
The Zacks Consensus Estimate for 2013 increased 1.8% to $4.41 per share as most of the estimates were revised higher over the last 30 days. For 2014, half of the estimates were revised higher over the same time frame, lifting the Zacks Consensus Estimate by 1% to $5.06 per share.
Last week, WEX Inc. also announced its intention to purchase the assets of ExxonMobil’s European commercial fuel card (Esso Card) program in an attempt to widen its global footprint.
Other Stocks to Consider
Financial transaction service providers Global Payments Inc. (GPN), MasterCard Incorporated (MA) and Higher One Holdings, Inc. (ONE), all with a similar Zacks Rank #2, are also worth considering.
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment