Wright Express Corp. (WXS)) pleased investors with its latest earnings report which sent shares soaring.
Company Description
Wright Express offers payment processing and information management services. The company services commercial and government fleets through its own marketing in addition to a relationship with MasterCard.
Passing Up Analysts
On Jul 29 Wright reported its second-quarter performance that included earnings per share of 57 cents, 17 cents higher than the Zacks consensus estimate. This was the second consecutive earnings surprise. Profits remained flat on a year-over-year basis.
A decline in gross processing transactions was countered by a 5% increase in the number of vehicles serviced by Wright. The relationship with MasterCard is flourishing as volume through the credit giant rose 24% to $771 million. Keep in mind that growth comes as fuel fell 41%, making the gain even more impressive.
CEO Speaks
Michael Dubyak, Chairman and CEO commented “Our second-quarter results were clearly better than we anticipated, with revenue and adjusted net income both exceeding the high end of our guidance range.”
Estimate Revisions
Forecasts for this year are averaging $2.03, up from $1.66 in the past 3 months. On average, analysts polled by Zacks are projecting earnings of $2.23 for 2010, up from $1.85.
These levels are projecting year-over-year growth rates of 9% and 10%, respectively.
The Chart
Shares of WXS continue to set higher highs and higher lows. Take look at the chart below.
