FLEETCOR (FLT) Surpasses Q2 Earnings and Revenue Estimates
FLEETCOR Technologies, Inc. FLT reported impressive second-quarter 2023 results as both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings (excluding 99 cents from non-recurring items) of $4.19 per share outpaced the consensus estimate by a slight margin and grew slightly year over year.
Revenues of $948.2 million slightly beat the consensus mark and increased 10.1% year over year on a reported basis.
FleetCor Technologies, Inc. Price, Consensus and EPS Surprise
FleetCor Technologies, Inc. price-consensus-eps-surprise-chart | FleetCor Technologies, Inc. Quote
Let’s check out the numbers in detail.
Revenues in Detail
Product-category-wise, fleet revenues of $382.6 million rose 1% year over year on a reported basis. The figure lagged our estimated $406.2 million.
Corporate Payments revenues of $247 million increased 30% year over year on a reported basis and beat our estimates by 13.5%.
Brazil segment’s revenues of $126.1 million improved 13% year over year, beating our estimated $125.6 million.
Lodging revenues of $136.6 million grew 19.7% year over year on a reported basis and surpassed our estimates by 5.7%.
Other revenues of $56 million increased 1% year over year on a reported basis and were lower than our estimated $66.2 million.
Operating Results
Operating income increased 11% from the prior-year quarter’s level to $412.7 million. Operating income margin increased 50 basis points to 43.5%, in comparison with the prior-year quarter.
Balance Sheet & Cash Flow
FLEETCOR exited second-quarter 2022 with cash, cash equivalents and restricted cash of $1.25 billion, compared with $1.27 billion at the end of the prior quarter.
FLT provided $499 million in net cash from operating activities. Capital expenditures totaled $42.2 million.
Q3 Guidance
Revenues are expected to be between $980 million and $1 billion, raised from previous guided range of $930 million and $950 million. The Zacks Consensus Estimate of $945.2 million is pegged below the guidance.
Adjusted earnings per share are expected to be between $4.44 and $4.64, upgraded from the prior range of $4.02 and $4.22. The consensus estimate of earnings of $4.18 per share is pegged below the guided range.
Updated 2023 Guidance
Adjusted earnings per share are anticipated to be between $17.09 and $17.35, raised from the prior guidance of $16.95 and $17.35. The Zacks Consensus Estimate of $17.08 is pegged below the guided range.
The lower range of the prior guidance has been increased from $3.82 billion. Revenues are now anticipated to be between $3.84 billion and $3.86 billion. The consensus estimate of $3.83 billion is pegged below the midpoint of the guided range.
Interest expenses are now expected between $330 million and $340 million, raised from the prior expectation of $310 million and $330 million.
Tax rate is expected to be approximately between 26% and 27%.
Weighted average fuel prices are expected to be around $3.66 per gallon in US.
Currently, FLEETCOR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Interpublic Group of Companies IPG second-quarter 2023 earnings surpassed the Zacks Consensus Estimate while revenues missed the same. Adjusted earnings (considering 6 cents from non-recurring items) came in at 74 cents per share, beating the consensus estimate by 23.3% but declining 17.5% on a year-over-year basis. Net revenues of $2.33 billion missed the consensus estimate by 2.9% and decreased 14.9% on a year-over-year basis. Total revenues of $2.67 billion decreased 2.6% year over year.
Equifax EFX reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. Adjusted earnings (excluding 59 cents from non-recurring items) came in at $1.71 per share, beating the consensus mark by 2.4% but declining 18.2% from the year-ago figure. Total revenues of $1.32 billion missed the consensus estimate by 0.4% while matching the year-ago figure on a reported basis. The top line gained 1% on a local-currency basis.
ManpowerGroup MAN reported lower-than-expected results. Second-quarter adjusted earnings of $1.58 per share lagged the Zacks Consensus Estimate by 1.9% and declined 32.2% year over year, owing to restructuring costs and Argentina-related non-cash currency translation losses. Revenues of $4.9 billion missed the consensus mark by 0.6% and decreased 4.3% year over year on a reported basis. The same decreased 3% on a constant-currency basis.
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