ME-based fuel card kingpin, WEX, reported Q3/15 revenue rose 2% to $226.1 million. However, on a non-GAAP basis, the Company’s adjusted net income for the quarter decreased 25% to $49.9 million.
Total fuel transactions processed increased 7% from the third quarter of 2014 to 105.1 million. Payment processing transactions increased 11% to 89.6 million. Average expenditure per payment processing transaction decreased 24% from the third quarter of 2014 to $65.04. U.S. retail fuel price decreased 28% to $2.61 per gallon from $3.61 per gallon in the third quarter of 2014. Total corporate card purchase volume grew 18% to $6.5 billion, from $5.5 billion for the third quarter of 2014.
“During the third quarter, we continued to execute against our strategic priorities to grow, accelerate, and scale the business, even amidst ongoing pressure from macroeconomic headwinds,” said Melissa Smith WEX’s president and chief executive officer. “Although this quarter’s financial results came in below expectations, the underlying fundamentals of our business remain strong. Our domestic fleet business continued to perform well and add new clients to the portfolio, while we remained focused on further globalizing our virtual card offering. Our commitment to superior customer service and delivering products and services aligned to our clients’ needs continues to drive low attrition rates and encouraging customer wins both domestically and abroad.”
For the fourth quarter of 2015, WEX expects revenue in the range of $198 million to $207 million and adjusted net income in the range of $39 million to $42 million, or $1.02 to $1.09 per diluted share. For the full year 2015, the Company expects revenue in the range of $840 million to $849 million and adjusted net income in the range of $184 million to $187 million, or $4.74 to $4.81 per diluted share.
Fourth quarter 2015 guidance is based on an assumed average U.S. retail fuel price of $2.39 per gallon, and approximately 39 million shares outstanding. Full-year 2015 guidance is based on an assumed average U.S. retail fuel price of $2.58 per gallon and approximately 39 million shares outstanding.
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