Wex: Undervalued Despite Modest Growth Expectations
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Wex shares have declined due to weak Q3 results and guidance, impacted by lower fuel prices and reduced spending by commercial customers. Despite this, earnings per share growth in FY25 is expected to improve due to modest revenue growth and a lower share count.
January 15, 2025 | 10:00 pm
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Wex shares have declined following weak Q3 results and guidance, affected by lower fuel prices and reduced commercial spending. However, EPS growth is anticipated in FY25 due to modest revenue growth and a lower share count.
The decline in Wex's share price is attributed to weak Q3 results and guidance, driven by lower fuel prices and reduced commercial spending. These factors have led to softer revenue growth. However, the expectation of EPS growth in FY25 due to a stable expense base and lower share count provides a positive outlook, though the immediate impact is negative.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100