WEX, TSYS Unleash Q3 Stats

As the quarterly reports continue to roll in, the market got a look into the latest from two commercial card players: WEX and TSYS, both of which released their reports on Wednesday (Oct. 28).

Corporate payments firm WEX, known best for its fleet card services, missed analysts’ targets but managed to post a 2 percent increase in total revenue from the same period a year prior, up to $226.1 million.

The numbers were not only impacted by some big-ticket acquisitions, including the recent $1.1 billion deal to take over Electronic Funds Source announced only days ago, but also by declining fuel prices and “tax-related items,” according to WEX Senior Vice President and Chief Financial Officer Steve Elder.

“Although this quarter’s financial results came in below expectations, the underlying fundamentals of our business remain strong,” said WEX President and CEO Melissa Smith. “Our domestic fleet business continued to perform well and add new clients to the portfolio, while we remained focused on further globalizing our virtual card offering.”

She added that the “solid operating performance” of the quarter was helped by the strategic acquisitions that will help expand WEX globally and grow its customer base.

Meanwhile TSYS, which operates as a global credit card and payments processor for corporate and consumer cards, posted a $120.6 million quarterly profit this round, up 45 percent from Q3 2014.

TSYS Chairman, President and Chief Executive Officer Troy Woods described the quarter as “fantastic” and one in which the company “again exceeded our expectation in all financial metrics.”

The corporation largely focused on its consumer-side operations during its call but did point out several key partnerships to enhance its commercial card services, including a deal with ING and U.S. Bank for commercial card processing. And, according to Paul Todd, TSYS senior executive vice president and chief financial officer, “most of this growth is in commercial card and single-use accounts,” AKA virtual cards.

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