Corporate payment solutions WEX announced news of a 30 percent jump in second quarter revenue, aided by higher fuel prices.
In a press release regarding the status of WEX shares and WEX earnings, the company reported revenue came in at $303.9 million, up from $233.9 million a year ago. Revenue was positively impacted by higher fuel prices to the tune of $8.1 million. Net earnings on a GAAP basis increased from $4.5 million to $17.1 million, or $0.40 per diluted share, compared with $12.6 million — or $0.32 per diluted share — for the second quarter of 2016.
Non-GAAP net income was reported at $54.2 million for the second quarter, or $1.26 per diluted share, up 15 percent from $1.10 per diluted share last year. U.S. retail fuel prices also increased 5 percent to $2.41 per gallon in second quarter 2016 from $2.29 per gallon in the second quarter of 2016.
“Today we posted a very strong quarter, highlighted by a top line beat and bottom line results at the top of our guidance range,” said Melissa Smith, WEX’s president and chief executive officer, in a prepared statement. “All three segments contributed to our impressive performance this quarter, and delivered better-than-anticipated organic revenue growth.”
During the second quarter, WEX said the average number of vehicles serviced worldwide was around 10.9 million, an increase of 13 percent from last year’s second quarter. Total fuel transactions processed increased by 24 percent to 130 million. Payment processing transactions increased by 15 percent to 108.1 million, and average expenditure per payment processing transaction was $68.43 — representing an increase of 23 percent from the second quarter of 2016.
Total Travel and Corporate Solutions card purchase volume grew 37 percent to $7.7 billion, up from $5.6 billion in 2016, while total health and employee benefits solutions purchase volume increased 7 percent to $1.1 billion in the second quarter of 2017.
Looking out to the full 2017 year, WEX has forecast its revenue to be in the $1.2 billion to $1.22 billion range, with an adjusted EPS of $5.15 to $5.35 per share. For the third quarter, it is targeting revenue of $302 million to $312 million and an adjusted EPS of $1.35 to $1.42 per share.