What Should You Know About FleetCor Technologies, Inc.’s (NYSE:FLT) Future?
Based on FleetCor Technologies, Inc.’s (NYSE:FLT) earnings update in September 2018, analyst forecasts seem bearish, as a -3.2% fall in profits is expected in the upcoming year relative to the past 5-year average growth rate of 22%. With trailing-twelve-month net income at current levels of US$740m, the consensus growth rate suggests that earnings will decline to US$717m by 2020. Below is a brief commentary around FleetCor Technologies’s earnings outlook going forward, which may give you a sense of market sentiment for the company. For those interested in more of an analysis of the company, you can research its fundamentals here.
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How is FleetCor Technologies going to perform in the near future?
The longer term expectations from the 12 analysts of FLT is tilted towards the positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. I’ve plotted out each year’s earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of FLT’s earnings growth over these next few years.
This results in an annual growth rate of 12% based on the most recent earnings level of US$740m to the final forecast of US$938m by 2022. This leads to an EPS of $11.76 in the final year of projections relative to the current EPS of $8.12. Margins are currently sitting at 33%, approximately the same as previous years. With analysts forecasting revenue growth of 0.25007 and FLT’s net income growth expected to roughly track that, this company may add value for shareholders over time.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For FleetCor Technologies, I’ve compiled three pertinent factors you should further examine:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is FleetCor Technologies worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether FleetCor Technologies is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of FleetCor Technologies? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
