Wright Express (WXS) just released an amazing earnings report. The company had Q1 earnings of 75 cents per share which was six cents more than Wall Street’s estimate. Quarterly revenue jumped 43.3% to $120.1 million which also beat estimates.
For Q2, Wright sees earnings coming in between 83 cents and 89 cents per share. But I was really impressed by the new guidance. As I’ve said before, few things impress me more than when a company raises its full-year guidance. Wright raised its 2011 guidance by 23 cents per share. The old EPS range was $3.17 to $3.37 and the new range is $3.40 to $3.60.
Given the strong results during the first quarter, we are increasingly confident in our ability to deliver solid performance as we head into the second quarter. We are raising our guidance for the full-year 2011 to reflect the strength we saw during the first three months of the year, coupled with higher fuel prices, a lower tax rate and a stronger Australian dollar.
Not all companies issue quarterly or full-year guidance. I particularly like companies that do. As I see it, guidance is a matter of trust. I like to know where I stand with my stocks. I don’t mind terribly if a company reduces its guidance, as long as we know with enough lead time. Problems always come up. But I really like hearing that guidance is being raised. That’s probably the best news the long-term investors can get.
Disclosure: Author holds a position in WXS.