Earlier in May 2020, Wex Inc. reported its first-quarter earnings. Revenues increased 13% Y-o-Y to $432 million. Wex Inc fleet segment revenues were up 7.3% Y-o-Y to $249.8 million. Strong transaction volumes from the North American and European fleet businesses were the primary reasons for the revenue growth. Travel and Corporate Solutions segment revenue was up 3.3% Y-o-Y to $84.4 million. However, purchase volumes went down due to the effects of the pandemic.
Finally, Health and Employee Benefit Solutions revenues were up a staggering 44.5% mainly due to growth in the US healthcare business and the Discovery Benefits acquisition. The acquisition was the most significant piece of Wex Inc news before the pandemic-triggered crash.
Adjusted earnings per share for the quarter were $1.81 per diluted share, a growth of 5% Y-o-Y. On the balance sheet side, Wex, together with all Wex Inc. subsidiaries, had $861.2 million of cash and cash equivalents at the end of Q12020. The company management has also reduced its US workforce by 2% permanently. It has cut salaries for select positions as well as reduced CapEx by $20 million. The management believes that all these actions and its balance sheet will allow the company to tide through the pandemic crisis.
According to Melissa Smith, CEO, Wex Inc., “We remain committed to ensuring the resilience of our business and strengthening our balance sheet and liquidity position. These priorities keep us focused on weathering the storm without sacrificing our long-term growth potential.”
Wex Inc stock closed at $160.18 on 15th June 2020. It has been up 32.93% for the past month as against the Nasdaq Composite’s 7.89% rise during the same period.