U.S. markets close in 5 hours 32 minutes
  • S&P 500

    3,965.64
    +24.16 (+0.61%)
     
  • Dow 30

    32,068.01
    +139.39 (+0.44%)
     
  • Nasdaq

    11,364.58
    +100.13 (+0.89%)
     
  • Russell 2000

    1,778.65
    +13.82 (+0.78%)
     
  • Crude Oil

    110.67
    +0.90 (+0.82%)
     
  • Gold

    1,848.20
    -17.20 (-0.92%)
     
  • Silver

    21.93
    -0.13 (-0.58%)
     
  • EUR/USD

    1.0687
    -0.0050 (-0.47%)
     
  • 10-Yr Bond

    2.7540
    -0.0060 (-0.22%)
     
  • GBP/USD

    1.2532
    -0.0000 (-0.00%)
     
  • USD/JPY

    127.2160
    +0.3870 (+0.31%)
     
  • BTC-USD

    29,837.29
    +975.25 (+3.38%)
     
  • CMC Crypto 200

    663.99
    -7.01 (-1.05%)
     
  • FTSE 100

    7,522.90
    +38.55 (+0.52%)
     
  • Nikkei 225

    26,677.80
    -70.34 (-0.26%)
     

FLEETCOR (FLT) Completes AFEX Buyout, Ups '21 EPS Guidance

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

FLEETCOR Technologies, Inc. (FLT) yesterday announced that it has completed the acquisition of Associated Foreign Exchange (“AFEX”), a cross-border payments provider. The deal was initially announced on Sep 17, 2020. Financial terms have been kept under wraps.

AFEX offers flexible cross-border payment solutions which help small- and medium-sized businesses grow internationally, irrespective of currency barriers.

FleetCor Technologies, Inc. Price

FleetCor Technologies, Inc. Price
FleetCor Technologies, Inc. Price

FleetCor Technologies, Inc. price | FleetCor Technologies, Inc. Quote

Acquisition to Help Handle Cross Border Payments

The buyout marks the addition of AFEX into FLEETCOR’s Cambridge Global Payments, under its corporate payments portfolio. Together, AFEX and Cambridge will handle cross-border payments in more than 145 currencies for nearly 30,000 customers, processing more than $65 billion in annual volume.

Ron Clarke, chairman and chief executive officer at FLEETCOR stated, "With the combination of AFEX and our current cross-border business, we expect the enhanced scale and breadth to accelerate revenue growth in our corporate payments business. The complementary geographic nature of the customer bases provides an immediate boost to our business, and this year, we anticipate the acquisition will be accretive to 2021 adjusted EPS, as we execute our integration plan."

Notably, the company has raised its adjusted earnings per share guidance for 2021 on completion of the AFEX acquisition. Adjusted earnings per share are now anticipated between $12.32 and $12.88 compared with the prior guidance of $12.14-$12.70. The Zacks Consensus Estimate of $12.46 lies within the updated guidance.

Zacks Rank and Other Stocks to Consider

FLEETCOR Technologies currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some top-ranked stocks in the broader Zacks Business Servicessector are Equifax EFX, Charles River CRAI and TransUnion TRU, each carrying a Zacks Rank #2 (Buy).

The long-term expected earnings per share (three to five years) growth rate for Equifax, Charles River and TransUnion is 14%, 15.5% and 20.9%, respectively.

Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research SherazMian hand-picks one to have the most explosive upside of all.

You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Equifax, Inc. (EFX) : Free Stock Analysis Report

Charles River Associates (CRAI) : Free Stock Analysis Report

FleetCor Technologies, Inc. (FLT) : Free Stock Analysis Report

TransUnion (TRU) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research