Wright Express Corp. (WXS) pleased investors with its latest earnings report which sent shares soaring.

Company Description

Wright Express offers payment processing and information management services. The company services commercial and government fleets through its own marketing in addition to a relationship with MasterCard.

Passing Up Analysts

On Jul 29 Wright reported its second-quarter performance that included earnings per share of 57 cents, 17 cents higher than the Zacks consensus estimate. This was the second consecutive earnings surprise. Profits remained flat on a year-over-year basis.

A decline in gross processing transactions was countered by a 5% increase in the number of vehicles serviced by Wright. The relationship with MasterCard is flourishing as volume through the credit giant rose 24% to $771 million. Keep in mind that growth comes as fuel fell 41%, making the gain even more impressive.

CEO Speaks

Michael Dubyak, Chairman and CEO commented “Our second-quarter results were clearly better than we anticipated, with revenue and adjusted net income both exceeding the high end of our guidance range.”

Estimate Revisions

Given the fact that the report was released less than 48 hours ago, it is no surprise that there are no fresh revisions just yet. However, over the past 3 months leading up to this announcement the Zacks consensus has risen.

Forecasts for this year are averaging $1.68, up 7 cents over the past 3 days. On average, analysts polled by Zacks are projecting earnings of $1.94 for 2010. Given the recent success, I would expect upward revisions to be forthcoming.

The Chart

Shares of WXS have blasted right through resistance on the latest earnings news. The stock is now nearing its 52-week high. Take a look at the chart below.

Zacks Investment Research
View original at: Zacks.com News Feed

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