WEX Shares Decline 3.6% Since Reporting Q3 Earnings Beat

WEX Inc. WEX reported impressive third-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.However, the weak fourth-quarter guidance failed to impress the market, as the company’s shares have declined 3.6% since the earnings release.For the fourth quarter of 2025, revenues are expected between $646 million and $666 million. The mid-point ($656 million) of the guided range is below the Zacks Consensus Estimate of $662.52 million. Adjusted net income per share is expected between $3.76 and $3.96. The mid-point of the guided range ($3.86) is below the Zacks Consensus Estimate of $3.89.Quarterly adjusted earnings of $4.59 per share surpassed the Zacks Consensus Estimate by 3.2% and increased 5.52% from the year-ago quarter. Revenues of $692 million beat the consensus estimate by 1.4% but declined 4% on a year-over-year basis.WEX Inc. Price, Consensus and EPS Surprise  WEX Inc. price-consensus-eps-surprise-chart | WEX Inc. QuoteThe stock gained 22.5% over the last six months, outperforming the 12.9% decline of the industry and the 23.4% rise of the Zacks S&P 500 composite.Segmental Revenues of WEXThe Mobility segment’s revenues increased 1% from the year-ago quarter to $360.8 million, beating our estimate of $346.4 million. The Corporate Payments segment’s revenues were $132.8 million, rising 4.7% from the third quarter of 2024 and missing our estimate of $134.2 million.The Benefits segment’s revenues increased 9.2% year over year to $198.1 million, beating our estimate of $197.4 million.WEX’s Operating ResultsAdjusted operating income declined 6.7% to $273.5 million from the year-ago quarter but beat our estimate of $256.8 million. The adjusted operating margin of 39.5% outpaced our estimate of 37.9% but declined 450 basis points year over year.Balance Sheet & Cash Flow of WEXWEX exited the quarter with cash and cash equivalents of $812.9 million compared with $595.8 million in the December-end quarter of 2024. The long-term debt was $3.72 billion compared with $3.08 million in the December-end quarter of 2024.The company used $159.6 million in cash from operating activities in the quarter. The adjusted free cash flow was $166.2 million. Capital expenditure totaled $35 million.WEX’s 2025 GuidanceFor 2025, revenues are expected between $2.63 billion and $2.65 billion compared with the prior mentioned $669-$689 million. The Zacks Consensus Estimate for the same is pegged at $2.65 billion. Adjusted net income per share is expected between $15.76 and $15.96 compared with the previously stated $15.37-$15.77. The mid-point of the guided range ($15.86) is below the Zacks Consensus Estimate of $15.89.Currently, WEX carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings SnapshotOmnicom Group Inc. OMC reported impressive third-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.Earnings of $2.15 per share beat the consensus estimate by 4.2% and increased 10.3% year over year. Total revenues of $4.04 billion surpassed the consensus estimate by 0.4% and rose 4% year over year. The increase in the top line was led by a 2.6% jump in revenues from organic growth.ManpowerGroup, Inc. MAN posted impressive third-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.Quarterly adjusted earnings per share came in at 83 cents, which beat the Zacks Consensus Estimate by 1.2% but decreased 35.7% year over year. Total revenues of $4.63 billion surpassed the consensus estimate by 0.6% and rose 2.3% year over year.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ManpowerGroup Inc. (MAN): Free Stock Analysis Report Omnicom Group Inc. (OMC): Free Stock Analysis Report WEX Inc. (WEX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks