WEX Rides on Buyouts and Product Excellence, Debt Woes Keep

WEX Inc. WEX is benefiting from its intensive community of gasoline and repair suppliers, product excellence and acquisitions.

The corporate lately reported first-quarter 2021 adjusted earnings of $1.79 per share that surpassed the Zacks Consensus Estimate by 11.9% however barely declined yr over yr. Whole revenues of $410.Eight million surpassed the consensus mark by a slight margin however declined 4.8% yr over yr.

Notably, WEX’s shares have elevated 38.4% prior to now yr in contrast with 13.5% progress of the trade it belongs to.

Income-Era Efforts

WEX’s strategic revenue-generation efforts embrace using its intensive community of gasoline and repair suppliers, transaction quantity progress, product excellence, advertising and marketing capabilities, and gross sales drive productiveness.

The corporate has been actively buying and investing in corporations, each in the USA in addition to internationally, to broaden its product and repair choices, thereby contributing to income progress and enhancing scalability.

The lately introduced acquisition of benefitexpress is predicted to broaden WEX’s choices in advantages administration by bringing in a complementary suite of options to its Well being choices. In 2020, WEX made acquisitions of eNett and Optal, each of that are anticipated to strengthen the corporate’s place within the international journey market.

Debt Woes Stay

WEX’s money and money equal steadiness of $974 million on the finish of first-quarter 2021 was effectively beneath the long-term debt stage of $2.5 billion. This underscores that the corporate doesn’t have sufficient money to satisfy this debt burden. Nonetheless, the money stage can meet the short-term debt of $354 million.

Zacks Rank and Shares to Contemplate

WEX at present carries a Zacks Rank #3 (Maintain). You possibly can see the entire record of at this time’s Zacks #1 Rank (Robust Purchase) shares right here.

Some better-ranked shares within the broader Zacks Enterprise Providers sector are ExlService EXLS, Equifax EFX and TransUnion TRU, every carrying a Zacks Rank #2 (Purchase).

The long-term anticipated earnings per share (three to 5 years) progress charge for Genpact, Equifax and TransUnion is 10.8%, 14% and 20.9%, respectively.

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The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.