Wright Express Jumps 12%

After a minor setback with Becton, Dickinson‘s (BDX) earnings (the stock is higher today), Wright Express (WXS) gave us a great earnings report and the stock is currently up 11.96% today.

For the third quarter, WXS earned 72 cents per share which was four cents better than expectations.

Total revenue for the third quarter of 2010 increased 17% to $100.2 million from $85.8 million for the third quarter of 2009. Net income to common shareholders on a GAAP basis was $20.6 million, or $0.53 per diluted share, compared with $23.4 million, or $0.60 per diluted share, for the third quarter last year.

On a non-GAAP basis, the Company’s adjusted net income for the third quarter of 2010 increased 13% to $28.1 million, or $0.72 per diluted share, from $24.9 million, or $0.63 per diluted share, for the year-earlier period.

Wright Express uses fuel-price derivative instruments to mitigate financial risks associated with the variability in fuel prices in North America. For the third quarter of 2010, the Company’s GAAP financial results include an unrealized $6.7 million pre-tax, non-cash, mark-to-market loss on these instruments. See exhibit 1 for a full reconciliation of adjusted net income.

“We experienced further momentum during the third quarter, exceeding both our top- and bottom-line guidance,” said Michael Dubyak, Chairman and CEO. “We made strides in advancing our long-term strategy to expand our presence abroad. Late in the third quarter, we closed the acquisition of Retail Decisions’ Australian fuel and prepaid card businesses, which allows us to extend our international presence and create a new platform for growth outside of fuel cards. We also began processing commercial fuel card transactions for BP International in New Zealand in September. These important steps in our international strategy, combined with strength in MasterCard and improving results in Fleet, provide us with multiple avenues for continued growth.”

In July, the company said to expect Q3 earnings between 65 and 68 cents per share, so business is going better than expected internally.

For all of 2010, they had been expecting EPS between $2.47 to $2.57. Today they raised the range to $2.69 to $2.75 per share. That’s a big increase. The full-year range translates to a Q4 range of 68 cents to 74 cents per share.

Posted by on November 4th, 2010 at 10:12 am


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