How did WEX's Q4 2024 earnings surprise analysts?

WEX's Q4 2024 earnings exceeded analysts' expectations in terms of revenue, though not in terms of EPS.

1. **Revenue Surprise**: WEX's reported revenue for the quarter was $636.5 million, which was slightly below the estimated revenue of $643.1 million. This discrepancy of -0.70% was a positive surprise compared to the Zacks Consensus Estimate of $632.11 million. This indicates that the company performed better than expected in terms of revenue generation.

2. **Earnings Per Share (EPS) Surprise**: The reported EPS was $3.57, which was slightly above the estimated EPS of $3.61. This difference of -0.85% did not meet the expectations of analysts closely watching the EPS figure. While the EPS did not exceed expectations, it was still higher than the EPS of $3.82 reported in the same quarter of the previous year, indicating a decline in profitability compared to the previous year's performance.

3. **Segmental Performance**: Within the segments that contribute to revenue, the Mobility segment's revenues decreased by 1.4% year-over-year to $345.2 million, while the Corporate Payments segment's revenues fell by 22.7% to $104.3 million compared to the fourth quarter of 2023. However, the Benefits segment's revenues increased by 4.9% to $186.9 million. These segmental performances highlight both challenges and opportunities for the company.
4. **Stock Reaction**: Despite the slight revenue beat and a positive EPS, the stock reacted positively, gaining 17% since the earnings release date. This suggests that investors may have had higher expectations for the revenue figures and were pleased with the overall performance, especially given the challenges faced by the Corporate Payments segment.

In conclusion, while WEX's Q4 2024 earnings showed resilience in certain areas, such as the Benefits segment, and exceeded expectations in revenue, the company's performance was mixed, with the EPS falling slightly short of forecasts. The positive stock reaction post-earnings release indicates that the market may be more focused on the revenue beat and the positive segments of the business, rather than the slight EPS shortfall.