FLEETCOR (FLT) Q3 Earnings Meet, Revenues Miss Estimates
FLEETCOR Technologies, Inc. FLT third-quarter 2023 adjusted earnings (excluding 85 cents from non-recurring items) of $4.49 per share came in line with the Zacks Consensus Estimate and grew 5.9% year over year.
Revenues of $970.9 million lagged the consensus mark by 0.9%. The top line, however, increased 8.7% year over year on a reported basis.
Revenues in Detail
Product category-wise, fleet revenues of $365.5 million fell 8% year over year on a reported basis and lagged our estimated $405.7 million.
Corporate Payments revenues of $258.8 million jumped 31% year over year on a reported basis and came ahead of our projection by 21.2%.
FleetCor Technologies, Inc. Price, Consensus and EPS Surprise
FleetCor Technologies, Inc. price-consensus-eps-surprise-chart | FleetCor Technologies, Inc. Quote
Brazil segment’s revenues of $134.2 million improved 24% year over year, surpassing our forecast of $133.2 million.
Lodging revenues of $141.4 million grew 12% year over year on a reported basis and outshined our anticipation by 9.4%.
Other revenues of $71 million climbed 7% year over year on a reported basis but fell short of our estimate of $77.4 million.
Operating Results
Operating income rose 14% from the prior-year levels to $444.9 million. Operating income margin expanded 220 basis points to 45.8% from a year ago.
Balance Sheet & Cash Flow
FLEETCOR exited third-quarter 2023 with cash, cash equivalents and restricted cash of $1.09 billion compared with $1.25 billion at the end of the prior quarter.
FLT provided $77.2 million in net cash from operating activities. Capital expenditures totaled $38.3 million.
Revenues are expected to be between $953 million and $983 million. The midpoint ($968 million) of the guided range is below the Zacks Consensus Estimate of $980.06 million.
Adjusted earnings per share are suggested in the range of $4.34-$4.64. The midpoint of the guided range ($4.49) meets the Zacks Consensus Estimate.
Latest 2023 View
Adjusted earnings per share are anticipated to be between $16.82 and $17.12 compared with the prior projection of $17.09 and $17.35. The midpoint of the guided range ($16.97) meets the Zacks Consensus Estimate of $16.97.
Revenues are now forecast in the $3.774-$3.804 billion band (prior view: $3.84-$3.86 billion). The midpoint of the guided range ($3.789 billion) is below the consensus estimate of $3.80 billion.
Interest expenses are now expected to be between $340 million and $350 million, rising from the prior expectation of $330 million and $340 million.
Tax rate is projected to be approximately between 26% and 27%.
Weighted average fuel prices are suggested to be around $3.96 per gallon in the United States.
Currently, FLEETCOR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots of Some Service Providers
The Interpublic Group of Companies, Inc. IPG posted third-quarter 2023 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.
IPG’s adjusted earnings of 70 cents per share lagged the consensus estimate by 6.7%. The bottom line, however, climbed 11.1% on a year-over-year basis.
Net revenues of $2.31 billion fell short of the consensus estimate by 3.3%. In the year-ago quarter, IPG’s net revenues were $2.3 billion. Total revenues of $2.68 billion increased 1.5% year over year.
Equifax Inc. EFX reported lower-than-expected third-quarter 2023 results. Adjusted earnings (excluding 45 cents from non-recurring items) were $1.76 per share, missing the Zacks Consensus Estimate by 1.1%. Yet, the metric rose 1.7% from a year ago.
EFX’s total revenues of $1.32 billion fell short of the consensus estimate by 0.7%. Nonetheless, the figure gained 6% from a year ago on a reported basis and 6.5% on a local-currency basis.
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