Wednesday, October 31, 2007
Missed Opportunity: WXS
In short, the company helps the trucking industry manage expenses, particularly gasoline.
With oil above $90 and the trannies feeling the 'gas squeeze,' WXS can go significantly higher.
Click here to access this mornings conference call.
It's a great story that can gather momentum.
Not a trucker. They help fleets manage expenses.
Because I track all of my reader and know where they live.
via the website:
In the simplest terms, Wright Express, along with its wholly owned subsidiary Wright Express Financial Services Corporation, is a leading provider of fleet and corporate charge cards. Flexible, pre-set cardholder limits and robust data capture from each card transaction provide users with valuable information to better manage corporate expenses. And the powerful back-end processing of those transactions helps streamline your entire process of tracking and paying for employee business expenses, be they for fuel, supply purchases or travel & entertainment.
They have a $40 price target.
With it up $3 already today, what makes you think it can go significantly higher?
Wright Express Profits Down on Cost Rise
Posted: 2007-10-31 09:13:40
SOUTH PORTLAND, Me. (AP) - Payment processing company Wright Express Corp. said Wednesday its third quarter profit dropped 36 percent as non-recurring expenses offset an increase in revenue.
Profits dropped to $22.2 million or 55 cents a share from $34.4 million or 83 cents a share in the year-ago quarter.
However - excluding amortization, stock compensation and other expenses - profits rose 40 percent to $22.4 million or 55 cents a share from $16 million or 39 cents a share.
Revenue increased 10 percent to $87.7 million from $79.7 million.
Analysts were expecting earnings of 51 cents a share on revenue of $88.6 million, according to a poll by Thomson Financial.
A stock repurchase scheme cost the company $10 million.
Payment processing transactions increased 15 percent to $53.6 million. However, the company's transaction processing business dropped 35 percent to $9.8 million, mostly reflecting customer ExxonMobil 's switch to the company's payment processing system.
The company gained $300,000 by trading fuel-price derivatives it purchased to offset variable fuel prices.
Chief Executive Michael Dubyak said that financial results were better than we anticipated. "Taking into account fluctuations in fuel prices, revenue exceeded our forecast and the positive mismatch on our derivatives was larger than we expected," he said.
As a result, adjusted net income came in 2 cents per share higher than the top end of the company's guidance.
Surprised it got by the editor, however, especially in a business article.
Due to market penetration.
WXS only has 9% of the U.S., fleet market, with a booming mastercard division.
Why do all stocks go up, fuckface?
Answer: They beat earnings.
Answer: They beat earnings."
Or, other fuckfaces buy them for no apparent reason other than to play the lottery, viz a vis the greater fool theory.
Links to this post: