Can WEX sustain its Q4 2024 earnings momentum?

**WEX's Q4 2024 earnings momentum is likely to face challenges sustaining its previous quarter's performance**, based on several key factors:

1. **Revenue Decline**: WEX experienced a decline in revenue from $673.5 million in Q2 2024 to $636.5 million in Q4 2024. This trend of decreasing revenue could indicate a weakening in the company's performance, which may not be favorable for sustaining earnings momentum.

|code|Ticker|Name|Date|Total Revenue|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|WEX|WEX.N|WEX|2024 Q1|6.527E8|1.55|169|
|WEX|WEX.N|WEX|2024 Q2|6.735E8|1.83|169|
|WEX|WEX.N|WEX|2024 Q3|6.655E8|2.52|169|
|WEX|WEX.N|WEX|2024 Q4|6.365E8|1.6|169|

2. **Earnings Per Share (EPS) Variations**: The EPS in Q4 2024 was $1.6, which represents a significant year-over-year decrease of -19.19%. Such a substantial drop in EPS can signal underlying issues within the business that might affect the company's ability to maintain its earnings momentum.

|code|Ticker|Name|Date|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|
|WEX|WEX.N|WEX|2024 Q1|6.650326797385621|-0.6410256410256416|169|
|WEX|WEX.N|WEX|2024 Q2|8.40173829068083|-16.81818181818182|169|
|WEX|WEX.N|WEX|2024 Q3|2.1645686214307647|500|169|
|WEX|WEX.N|WEX|2024 Q4|-4.040404040404041|-19.191919191919187|169|

3. **Segment Performance Concerns**: Specific segments within WEX, such as Corporate Payments, have faced challenges. For instance, there was a 6% decrease in revenue due to a model change for a large online travel agency customer. These segment-specific issues can impact the overall earnings momentum.
4. **Market Conditions and External Factors**: WEX has mentioned facing headwinds such as declining fuel prices and operational issues. These external factors can negatively affect profitability and make it difficult to sustain earnings momentum.
5. **Guidance and Outlook**: WEX has revised its 2024 outlook downward due to these challenges, with Q4 revenue guidance ranging between $630 million and $640 million. This revised outlook suggests that the company itself does not anticipate a strong rebound in earnings momentum in the near term.

In conclusion, while WEX has shown resilience in certain quarters, the combination of declining revenue, EPS variations, segment-specific challenges, and adverse market conditions suggests that sustaining Q4 2024 earnings momentum could be difficult. The company's revised guidance for the year also indicates a more cautious outlook.