Goldman Sachs Comments On Wright Express Corp Following Recent Earnings Release

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Wright Express Corp
WXS
reported 1Q11 EPS of $0.75 vs. Goldman Sachs/consensus $0.66/ $0.69. Revenue was $120 mn, vs. Goldman/consensus $114 mn/$117mn. Management upped revenue guidance to $533-553mn and EPS guidance to $3.40-3.60. The solid print was driven by solid growth in fuel and payment processing transactions, as well as solid corporate charge card purchase volume. High fuel prices provided a tailwind, as the domestic retail fuel price of $3.38/gallon was well ahead of expectations, though Goldman remains cautious given the fine line between favorable fuel price impacts and demand destruction. Overall, Goldman believes the print further demonstrates WXS' strong model and positioning in the still- underpenetrated fleet segment, and are encouraged by a continued positive tone and increased full-year guidance this early in the year. Goldman's estimates/expectations heading into the quarter were relatively high given the fuel price tailwind, and it believes the shares are fully valued at current levels. Goldman Sachs has a $57 PT and Neutral rating on WXS WXS is trading lower at $54.70
Posted In: Analyst ColorAnalyst RatingsData Processing & Outsourced ServicesGoldman SachsInformation Technology
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