Oppenheimer Raises Price Target on Wex, Inc. (WEX) Following 3Q Report
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Oppenheimer reiterated an Outperform rating on WEX Inc. (NYSE: WEX), and raised the price target to $120.00 (from $101.00), following the company's 3Q earnings report. Revenue grew ~27% Y/Y to ~$288M. EPS fell 4% Y/Y to $1.25. WEX's increased FY16 guide anticipates revenue of $1.00-1.01B (from $975M-1.0B) and EPS of $4.53-4.60 (from $4.17-4.37).
Analyst Glenn Greene commented, "WEX reported upside 3Q16 results as revenue increased ~27% year-over-year (+12% organic ex. EFS/fuel/FX) while EPS fell 4% Y/Y to $1.25 (vs. our/Street's $1.12/1.13 estimates). Lower fuel prices dragged revenue growth by ~5pts, but EPS benefited $0.09 from a MasterCard contract renewal (one-time benefit). Notably, 3Q results benefited from a full-quarter contribution from the EFS acquisition (slightly <$40M revenue), which closed 7/1. Management suggests the integration is progressing well. Reflecting the upside quarter and an improving fuel price/ FX environment, WEX raised its FY16 outlook, which now anticipates revenue of $1.00-1.01B (was $975M-1.0B) and adj. EPS of $4.53-4.60 (was $4.17-4.37). Macrodriven same-store sales declines (-4% in 3Q) also persisted. Maintain Outperform rating and raise price target to $120 (from $101)."
Shares of WEX Inc. closed at $112.79 yesterday.
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