WEX Beats Q4 Expectations With Corporate Travel Growth

Commercial payments firm WEX has surpassed analyst expectations with its fourth-quarter earnings data released Wednesday (Feb. 21).

The company posted a 14 percent year-over-year revenue increase of $331.3 million for Q4 2017, compared with estimates of $327.19 million. Price per share hit $1.49, also beating estimates of $1.33.

In a statement, WEX President and Chief Executive Officer Melissa Smith said the organization saw growth across the board.

“We are extremely pleased by our fourth quarter and fiscal year performance, with positive contributions from all three of our segments driving 2017 revenues to record levels,” she said. “Our relentless approach to executing on our strategic priorities continues to deliver outstanding results and position us for long-term growth.”

The company saw an average increase of 8 percent in the number of vehicles serviced from Q4 2016 to Q4 2017, and volume of fuel transactions processed increased 6 percent year over year to 130.8 million.

WEX’s Travel and Corporate Solutions unit saw purchase volume grow 17 percent to $7.4 billion, the firm said, while its Health and Employee Benefits Solution saw an average increase in the number of SaaS accounts in the U.S. grow by 29 percent year over year.

“Our fourth quarter and fiscal year outperformance reflects our ability to grow organically and leverage our strategic investments,” said WEX Chief Financial Officer Roberto Simon in another statement. “The foundation we have built has never been stronger and will continue to drive better execution as we look to capitalize on additional growth opportunities in the years ahead.”

Last November, WEX announced a partnership with Citibank, which is one of three financial institutions (FIs) in the U.S. with a GSA SmartPay 3 contract. The deal sees Citibank using WEX to issue fleet payment solutions, including fleet cards, to federal agencies.

About a month prior, the company landed a 10-year extension on its fleet card contract with Sheetz.