UPDATE: Wex Posts Downbeat Q4 Earnings, Issues Weak Outlook

Wex Inc. WEX reported weaker-than-expected earnings for the fourth quarter and issued a downbeat outlook. The South Portland, Maine-based company posted quarterly net income of $47.9 million, or $1.23 per share, up from $34.5 million, or $0.88 per share, in the year-ago period. On a non-GAAP basis, its adjusted net income fell to $0.96 per share, from $1.17 per share. Its revenue climbed 16.2% to $211.9 million. However, analysts were expecting earnings of $1.12 per share on revenue of $208 million. Total fuel transactions processed rose 3% y/y to 95.7 million in the quarter, while payment processing transactions climbed 9% to 79.2 million. Total corporate card purchase volume surged 37% to $4.5 billion from $3.3 billion, while average expenditure per payment processing transaction slipped 8% to $76.66. Average number of vehicles serviced worldwide rose 10% to around 8.5 million in the quarter. "We delivered strong top-line growth and solid operating performance throughout 2014," said Melissa Smith, WEX's president and chief executive officer. "Despite the foreign exchange and fuel price headwinds we experienced this quarter, the underlying fundamentals of our business remain very strong and we look to carry this momentum forward into 2015." For the first quarter, Wex expects adjusted earnings of $0.94 to $1.02 per share, on revenue of $192 million to $201 million. Analysts expected earnings of $1.13 per share on revenue of $205 million. The company projects FY15 adjusted earnings of $4.90 to $5.20 per share, versus expectations of $5.27 per share. It expects revenue of $860 million to $890 million, versus estimates of $880.8 million. Wex shares rose 0.03% to close at $98.09 on Friday.