WEX Inc. continued to outperform financial analysts’ predictions in the third quarter despite the revenue-shaving effect of low fuel prices, the company reported Thursday.
The South Portland-based corporate payment services provider’s stock price opened at $108.60 per share Thursday following the quarterly earnings report’s release, its highest since July 2015.
WEX, which derives about two-thirds of its revenue from fuel-payment systems for fleet vehicles, reported revenue of $287.8 million in the third quarter. Quarterly revenue was $7.7 million higher than analysts expected and up 27.3 percent from $226.1 million in the third quarter of 2015.
That was despite an estimated negative impact on revenue of $10.7 million related to low fuel prices when compared with a year earlier, WEX reported. Company President and CEO Melissa Smith said about 30 percent of WEX’s revenue is affected by fluctuations in fuel prices.
Net income was $55.4 million, or $1.25 per share, after adjustments related to its recent acquisition of Nashville-based Electronic Funds Source, a former competitor. According to investor website Seeking Alpha, WEX net income in the third quarter beat analyst expectations by 12 cents per share.
The company’s adjusted net income for the third quarter of 2015 was $50.4 million, or $1.30 per share. WEX issued 4 million additional shares in July as part of the EFS purchase, which slightly diluted its earnings per share.
Not including adjustments, WEX’s net income for the third quarter of 2016 was $19.7 million, or $0.46 per share, compared with $32.2 million, or $0.83 per share, for the third quarter of 2015.
Smith attributed the company’s continued strong performance to the quality of her staff and its ability to attract and retain customers. On Thursday, WEX announced the signing of a 10-year extension to its North American fleet card contract with Exxon Mobil Corp. and Imperial Oil Ltd. of Canada.
“There’s a great group of people that work here,” Smith said. “I could keep going on and on with the list of contract signings that we’ve had.”
WEX has about 700 employees in South Portland and about 2,000 worldwide.
Send questions/comments to the editors.
