WEX Inc. (WEX) has reported a 74.70 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $5.29 million, or $0.12 a share in the quarter, compared with $20.90 million, or $0.54 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $55.17 million, or $1.28 a share compared with $45.19 million or $1.16 a share, a year ago.
Revenue during the quarter surged 36.77 percent to $290.84 million from $212.64 million in the previous year period. Gross margin for the quarter expanded 525 basis points over the previous year period to 86.71 percent. Total expenses were 83.57 percent of quarterly revenues, up from 76.54 percent for the same period last year. That has resulted in a contraction of 703 basis points in operating margin to 16.43 percent.
Operating income for the quarter was $47.80 million, compared with $49.89 million in the previous year period.
"We are pleased by our strong fourth quarter and fiscal year performance, with favorable results reported across all three of our core segments," said Melissa Smith, WEX's president and chief executive officer. "This outperformance reflects the significant progress we have made in executing on our strategic priorities and accelerating growth across our core verticals. Our ability to drive results, regardless of the operating environment, highlights the strength of our brand and the diversity of our offerings." Smith continued, "Over the past year we have grown both organically and through strategic investments. Our business is more global, diverse and innovative than ever before, and our capabilities continue to expand and position ourselves to compete in the global marketplace."
For the financial year 2017, WEX Inc. forecasts revenue to be in the range of $1,150 million to $1,190 million. The company expects adjusted net income to be in the range of $220 million to $237 million. It expects diluted earnings per share to be in the range of $5.10 to $5.50 on adjusted basis.
For the first-quarter 2017, WEX Inc. forecasts revenue to be in the range of $275 million to $285 million. The company expects adjusted net income to be in the range of $50 million to $53 million. On an adjusted basis, the company expects diluted earnings per share to be in the range of $1.16 to $1.24.
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