Wright Express Beats Analyst Estimates on EPS

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Wright Express (NYS: WXS) reported earnings on Feb. 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Wright Express met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased significantly.

Margins increased across the board.

Revenue details
Wright Express logged revenue of $139.8 million. The eight analysts polled by S&P Capital IQ predicted revenue of $141.1 million. GAAP sales were 22% higher than the prior-year quarter's $114.9 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.98. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.92 per share on the same basis. GAAP EPS of $0.84 for Q4 were 79% higher than the prior-year quarter's $0.47 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 79.0%, 460 basis points better than the prior-year quarter. Operating margin was 43.4%, 1,560 basis points better than the prior-year quarter. Net margin was 23.5%, 740 basis points better than the prior-year quarter.

Looking ahead
On the bottom line, the average EPS estimate is $0.87.

Next year's average estimate for revenue is $609.4 million. The average EPS estimate is $4.26.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 76 members out of 84 rating the stock outperform, and eight members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Wright Express a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Wright Express is outperform, with an average price target of $57.13.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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