Fleetcor Technologies Inc (FLT) Reports Solid Growth in Q3 2023 Earnings
FLT's Q3 2023 revenue increased by 9% year-over-year to $970.9 million.
Adjusted net income per diluted share rose by 6% to $4.49.
Organic revenue growth was reported at 10%, with corporate payments growing by 20%.
The company updated its full-year 2023 guidance, expecting continued growth in Q4.
Fleetcor Technologies Inc (NYSE:FLT), a leading global business payments company, released its financial results for the third quarter ended September 30, 2023, on November 8, 2023. The company reported a 9% increase in revenues to $970.9 million compared to the same quarter in the previous year. Net income also saw a 9% rise to $271.5 million, and net income per diluted share grew by 10% to $3.64.
Financial Highlights and Strategic Developments
FLT's non-GAAP results showed a 13% increase in EBITDA to $528.9 million and a 4% rise in adjusted net income to $335.1 million. Adjusted net income per diluted share increased by 6% to $4.49. The company's chairman and CEO, Ron Clarke, highlighted the quarter's success, stating,
We reported another good quarter, with revenues and adjusted net income per share growth of 9% and 6%."
Clarke also noted the strategic acquisition of the world's second-largest mobile parking operator, which aligns with FLT's strategy to transform its vehicle payments business.
FLT's CFO, Tom Panther, remarked on the quarter's activities, including the sale of the Russia business and the acquisition of PayByPhone, which contributed to the company's performance. Panther also emphasized the company's disciplined expense management, which resulted in EBITDA margin expansion of 225 basis points over the prior period.
Updated Fiscal Year 2023 Outlook
Looking ahead, FLT has updated its guidance for the remainder of the year, reflecting the current macro outlook and recent strategic moves. The company expects fourth-quarter revenue and adjusted net income per share to grow by approximately 10% and 11%, respectively. For the full year 2023, FLT anticipates total revenues between $3,774 million and $3,804 million, with adjusted net income per diluted share between $16.82 and $17.12.
Income Statement and Balance Sheet Analysis
FLT's income statement reflects a solid performance with a 9% year-over-year increase in revenues. The balance sheet as of September 30, 2023, shows a healthy financial position with $1.09 billion in cash and cash equivalents and a strong equity position of $3.06 billion.
The company's disciplined capital deployment included the repurchase of $530 million of FLT stock in the quarter, alongside strategic acquisitions aimed at driving future growth.
Investor Relations and Forward-Looking Statements
FLT will host a conference call to discuss the Q3 2023 financial results, providing an opportunity for investors to gain further insights into the company's performance and strategies. The call will be accessible via webcast from the company's investor relations website.
While the company's forward-looking statements provide expectations for future performance, they are subject to uncertainties and changes in circumstances, which investors should consider when evaluating FLT's prospects.
Conclusion
Fleetcor Technologies Inc (NYSE:FLT) has demonstrated a strong performance in the third quarter of 2023, with revenue and adjusted net income showing healthy growth. The company's strategic acquisitions and disciplined expense management have contributed to its success, and the updated guidance suggests confidence in continued growth. Investors are encouraged to review the full earnings report and tune into the conference call for a comprehensive understanding of FLT's financial health and strategic direction.
For detailed financial information and reconciliations of non-GAAP measures, please refer to the exhibits provided in the earnings release.
Explore the complete 8-K earnings release (here) from Fleetcor Technologies Inc for further details.
This article first appeared on GuruFocus.
