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FleetCor (FLT) to Post Q2 Earnings: What's in the Offing?

Zacks Equity Research

FleetCor Technologies, Inc. FLT will report second-quarter 2019 results on Aug 6, after the bell.

Shares of the company have gained a massive 51.6% year to date, outperforming the 42.5% rally of the industry it belongs to.

Strength Across Product Categories to Drive Q2 Top Line

The Zacks Consensus Estimate for the to-be-reported quarter’s revenues stands at $634.1 million, indicating growth of 8.4% from the year-ago quarter’s reported figure. The upside is likely to come from strength across the five major product categories – fuel, corporate payments, toll, lodging and gift.

The consensus mark for Fuel revenues is pegged at $291 million, indicating year-over-year growth of 7.4%. Strong performance across majority of the company’s fuel card businesses is expected to drive this growth.

Strength across Cambridge and Comdata businesses is expected to drive Corporate Payments revenues, the consensus estimate for which is pegged at $122 million, suggesting year-over-year growth of 22%.

The consensus mark for Tolls revenues is pegged at $88 million, indicating a 7.3% year-over-year growth. Lodging revenues are anticipated to be around $51 million, suggesting year-over-year growth of 14.3%. Gift revenues are expected to deliver year-over-year growth of nearly 1%.

In first-quarter 2019, revenues of $621.8 million increased 6.2% year over year.

FleetCor Technologies, Inc. Revenue (TTM)

 

FleetCor Technologies, Inc. Revenue (TTM)

FleetCor Technologies, Inc. revenue-ttm | FleetCor Technologies, Inc. Quote

 

Bottom-Line Projections

The Zacks Consensus Estimate for earnings in the to-be reported quarter is pegged at $2.79, indicating growth of 8.6% from the year-ago reported figure. In first-quarter 2019, adjusted earnings of $2.67 per share increased 6.8% year over year.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if the companies are witnessing negative estimate revisions. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

FleetCor has an Earnings ESP of -0.36% and Zacks Rank #3.

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that you may consider as our model shows these have the right combination of elements to deliver a positive earnings surprise:

Parsons Corporation PSN, with an Earnings ESP of +5.26% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Vectrus VEC, with an Earnings ESP of +5.07% and a Zacks Rank #3.

Green Dot GDOT has an Earnings ESP of +0.89% and a Zacks Rank #3.

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