On Wednesday, Wright Express (WXS), one of the new stocks on this year’s Buy List, reported Q4 earnings, after costs, of 56 cents a share, which was two cents higher than estimates. For 2009, net income pre-share rose to $2.18 from $1.88 last year.
On the earnings call, this is what the company had to say about future projections:
For the first quarter of 2010 we expect to report revenues in the range of 82 to $87 million. This is based on an average retail sales price of $2.78 per gallon. For the full year 2010, we expect revenues ranging from 360 to $370 million based on an average retail sales price of $2.80 per gallon.
In terms of earnings for Q1 of 2009 we expected to report adjusted net income in the range of $21 to $23 million or $0.53 to $0.58 per diluted share. We expected adjusted net income for the full year 2010 in the range of 89 to $97 million or $2.26 to $2.46 per diluted share and approximately 39 million shares outstanding.
If we take $2.36 as the midpoint, that means the stock is going for about 12 times this year's earnings. The stock dropped initially on the news but rallied back yesterday. So far, it’s our biggest loser of the year.