Wex, Inc. (NYSE: WEX) reported Q1 EPS of $1.81, $0.23 worse than the analyst estimate of $2.04. Revenue for the quarter came in at $431.68 million versus the consensus estimate of $424.31 million.

“WEX began the year benefiting from favorable execution and building upon the strong momentum coming out of 2019. Despite the challenges and uncertainties caused by the COVID-19 pandemic, we finished strong with top-line growth across all segments and improved operating income by expanding our market share and leveraging our recent strategic acquisitions in the first quarter,” said Melissa Smith, WEX’s Chair and Chief Executive Officer.

Ms. Smith continued, “Recognizing the impact of these unprecedented times, we acted decisively to ensure seamless operations and services, while keeping our employees, customers and communities safe. We have taken several precautionary steps to safeguard our business and employees from the effects of the novel coronavirus, including implementing travel bans and restrictions, temporarily closing offices and canceling participation in various industry events. Also, we have informed the owners of eNett and Optal that we have concluded that the pandemic and conditions arising in connection with it have had, and continue to have, a material adverse effect on their businesses and that WEX is not required to close the transaction.

“In addition, we have taken a series of actions to protect our financial flexibility, including pay cuts for the Board and executive officers, re-scaling headcount worldwide and re-focusing our capital allocation priorities, among others. At the same time, we are also managing the Company for the long term and keeping our strategic pillars in mind so that we will be well positioned for when the economy recovers. This combination allows us to navigate times like this without sacrificing our commitment to long-term sustainable growth. We have established a strong platform that is more resilient and diversified than ever before. While there is uncertainty in the near-term, I am confident WEX will emerge a stronger business when conditions improve.”

“Revenue was up 13% in the first quarter, driven by outperformance in our Corporate Payments and U.S. Health businesses, partially offset by lower travel and, to a lesser extent, fleet volumes in the back half of the quarter as COVID-19 began to impact those end markets,” said Roberto Simon, WEX’s Chief Financial Officer. “In response to these challenging market conditions, which are continuing into the second quarter, we rescaled portions of the business to better align with the current operating environment. We are effectively responding to COVID-19 developments and remain confident in our business and the future of WEX.”

Withdrawal of 2020 Financial Guidance

Given the continued evolution of the COVID-19 pandemic and the uncertainty surrounding its impact on the global economy, the Company believes it is prudent to withdraw all previously-issued full fiscal year 2020 financial guidance and refrain from issuing any additional quarterly guidance. WEX continues to carefully monitor the pandemic and the impact on its business; however, given the uncertainty regarding the pandemic's spread, duration, and impact, the Company is currently unable to predict the precise extent to which the COVID-19 pandemic will impact its future operations and financial results.

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