Why Is Wex (WEX) Down 2.6% Since Last Earnings Report?

It has been about a month since the last earnings report for Wex (WEX). Shares have lost about 2.6% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Wex due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.WEX Q2 Earnings Beat EstimatesWEX reported impressive second-quarter 2025 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.Quarterly adjusted earnings of $3.95 per share surpassed the Zacks Consensus Estimate by 7.1% and increased 1.02% from the year-ago quarter. Revenues of $659.6 million beat the consensus estimate by 0.9% but declined 2.06% on a year-over-year basis.Segmental Revenues of WEXThe Mobility segment’s revenues decreased 3.7% from the year-ago quarter to $346.2 million, missing our estimate of $354.4 million. The Corporate Payments segment’s revenues were $118.3 million, down 34.2% from the second quarter of 2024, and missed our estimate of $119 million.The Benefits segment’s revenues increased 45.5% year over year to $195.1 million, beating our estimate of $185.5 million.WEX's Operating ResultsAdjusted operating income declined 11.3% to $243 million from the year-ago quarter but beat our estimate of $223.2 million. The adjusted operating income margin of 36.8% outpaced our estimate of 33.9% but declined 390 basis points year over year.Balance Sheet & Cash Flow of WEXWEX exited the quarter with cash and cash equivalents of $772.6 million compared with $595.8 million in the December-end quarter of 2024. The long-term debt was $3.9 billion compared with $595.8 million in the December-end quarter of 2024.The company used $264.6 million in cash from operating activities in the quarter. The adjusted free cash flow was $194.3 million. Capital expenditure totaled $34.6 million.WEX's Q3 & 2025 OutlookFor the third quarter of 2025, revenues are expected to be between $669 million and $689 million. Adjusted net income is now expected between $4.30 and $4.50 per share.For 2025, revenues are expected to be between $2.61 billion and $2.65 billion. Adjusted net income is now expected between $15.37 and $15.77 per share.How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in fresh estimates.The consensus estimate has shifted 5.56% due to these changes.VGM ScoresAt this time, Wex has a average Growth Score of C, a grade with the same score on the momentum front. However, the stock has a grade of A on the value side, putting it in the top 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Wex has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>Want 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 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