Should You Punt On This Mid Cap US Stock-WEX

Acrobull UK Advisory Services Ltd.

WEX Inc. operates a commerce platform in the United States and internationally. The Mobility segment offers fleet vehicle payment solutions, transaction processing, and information management services.

Recent Highlights

Company’s Comments- Although the Mobility segment's revenues fell 1.5% from the same quarter last year to $333.8 million, they nevertheless exceeded our forecast of $324 million. Revenues from the Corporate Payments division fell 15.5% to $103.5 million in the first quarter of 2024, falling short of our projection of $112.9 million.

Revenues from the Benefits sector surpassed our forecast of $192.5 million, rising 4.2% year over year to $199.3 million.

First Quarter 2025 Highlights

Total revenue for the first quarter of 2025 decreased 2% to $636.6 million from $652.7 million for the first quarter of 2024. The revenue decrease in the quarter.

Net income on a GAAP basis increased by $5.7 million to a net income of $71.5 million, or $1.81 per diluted share, for the first quarter of 2025, compared with net income of $65.8 million, or $1.55 per diluted share, for the first quarter of 2024.

The Company's adjusted net income, which is a non-GAAP measure, was $138.4 million for the first quarter of 2025, or $3.51 per diluted share, up 1% per diluted share from $3.46 per diluted share, or $146.7 million, for the same period last year.

GAAP operating income margin for the first quarter of 2025 was 24.7% compared to 25.2% for the same period last year. Adjusted operating income margin, which is a non-GAAP measure, was 36.7% in the first quarter of 2025 compared to 38.5% for the prior year comparable period.

Stock Observation- The company has reported good financial results in the first quarter however the company overall fundamentals remain strong hence positive results are expected in the next quarter. The RSI level for the stock is at 45 showing oversold conditions.

Risk Involved- Financial performance of the company may have an impact on the company stock performance.

Considering all the factors and financials of the company Acrobull UK maintains Buy for the stock.

Disclaimer- Though our research is fundamentally and technically based on Acrobull UK only provides general advice on the stocks and it is imperative for the investors to do the risk assessment for themselves before investing as Acrobull UK would not be liable for any loss or profit arising out through the investment made by the investors on our recommendations.

It is also advisable for the investors to consult with Financial Advisor, Broker or to seek any legal assistance as the research conducted by Acrobull UK is factually based and recommendations are given in accordance with that, but it is imperative to understand that Acrobull UK does not guarantee returns.

Acrobull UK Recommendation Based on Evaluation

Current Market Price	$126.91 USD
Acrobull Recommendation	Buy
Target Price	$150 USD
RSI Level	14 Day RSI 42
Total Shares Outstanding	34.24 Million
Shares held by Insiders Risk Factor Stop Loss	1.01% Medium 5%