FLEETCOR (FLT) to Report Q4 Earnings: What's in the Offing?
FLEETCOR Technologies, Inc. FLT is scheduled to release its fourth-quarter 2023 results on Feb 7, after the closing bell.
FLT has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the four trailing quarters, the average surprise being 1.64%.
Q4 Expectations
The Zacks Consensus Estimate for the top line is currently pegged at $968.39 million, up 9.6% from the year-ago actual figure. Strategic acquisitions like PayByPhone and strong demand for EVs are likely to have been the reasons for such top-line growth.
FleetCor Technologies, Inc. Price and EPS Surprise
FleetCor Technologies, Inc. price-eps-surprise | FleetCor Technologies, Inc. Quote
The consensus estimate for earnings per share is pegged at $4.47, up 10.6% from the year-ago figure. Increasing revenues and cost synergies through a disciplined cost management system are likely to have played a part in such an increase.
Segmental Expectations
The Corporate Payments segment’s revenues are currently pegged at $243 million, up 20.3% from the year-ago reported figure. The growth is likely to have been due to the expected increase in the proprietary merchant network and an increase in the amount of cardable spending.
The Lodging segment’s revenues are estimated to be $135 million, up 10.5% from the year-ago figure.
From first-quarter 2023, FLEETCOR has revamped its business segment reporting, shifting from Fuel, Corporate Payments, Tolls, Lodging, and Gift to Fleet, Corporate Payments, Lodging, and Brazil. This change reflects the evolving scope of the Brazil business beyond tolls, aligning with Fleetcor's initiative to streamline its presentation.
Our estimate for fourth-quarter 2023 revenues from the Fleet segment is currently pegged at $383.9 million. The existing organic growth and the newly introduced fleet transformation plan, which is aimed at accelerating the revenue growth of that business along with the acquisition of PayByPhone further bolsters the success rate of the strategy.
The Brazil segment’s revenues are pegged at $130.7 million. A broader vehicle payment strategy, which leverages an anchor product, used by a large customer base is likely to have been responsible for the revenue growth in the segment.
Our estimate for adjusted EBITDA for the fourth quarter is pegged at $528.3 million, indicating 15.1% growth from the year-ago figure. EBITDA margins are expected to be 54.8%.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for FLT this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
FLT has an Earnings ESP of -0.18% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are a few stocks from the broader Business Services sector, which according to our model, have the right combination of elements to beat on earnings this season.
Waste Connections WCN: The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $2.03 billion, indicating growth of 8.6%. For earnings, the consensus mark is pegged at $1.08 per share, up 21.4% from the year-ago quarter. The company beat the consensus estimate in each of the past four quarters, with an average surprise of 1.48%.
WCN currently carries an Earnings ESP of +0.05% and a Zacks Rank of 2. The company is scheduled to declare its fourth-quarter results on Feb 13.
Waste Management WM: The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $5.19 billion, indicating growth of 5.1%. For earnings, the consensus mark is pegged at $1.52 per share, up 16.9% from the year-ago quarter. The company beat the consensus estimate in two of the past four quarters and matched on the other two instances. It has a negative average surprise of 1%.
FI currently carries an Earnings ESP of +0.46% and a Zacks Rank of 2. The company is scheduled to declare its fourth-quarter results on Feb 12.
Fidelity National FIS: The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $2.52 billion, indicating a decline of 32.2%. For earnings, the consensus mark is pegged at 95 cents per share, down 44.4% from the year-ago quarter figure. The company beat the consensus estimate in three of the past four quarters and missed on the other instance. It has an average negative surprise of 7%.
FIS currently carries an Earnings ESP of +3.40% and a Zacks Rank of 3. The company is scheduled to declare its fourth-quarter results on Feb 26.
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Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report
Waste Management, Inc. (WM) : Free Stock Analysis Report
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FleetCor Technologies, Inc. (FLT) : Free Stock Analysis Report
