Investors in FLEETCOR Technologies, Inc. (NYSE:FLT) had a good week, as its shares rose 5.1% to close at US$232 following the release of its quarterly results. The result was positive overall - although revenues of US$585m were in line with what the analysts predicted, FLEETCOR Technologies surprised by delivering a statutory profit of US$2.19 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following the latest results, FLEETCOR Technologies' 20 analysts are now forecasting revenues of US$2.67b in 2021. This would be a solid 8.1% improvement in sales compared to the last 12 months. Per-share earnings are expected to expand 18% to US$10.15. Before this earnings report, the analysts had been forecasting revenues of US$2.70b and earnings per share (EPS) of US$10.25 in 2021. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
There were no changes to revenue or earnings estimates or the price target of US$284, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on FLEETCOR Technologies, with the most bullish analyst valuing it at US$324 and the most bearish at US$245 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that FLEETCOR Technologies' revenue growth is expected to slow, with forecast 8.1% increase next year well below the historical 10%p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than FLEETCOR Technologies.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple FLEETCOR Technologies analysts - going out to 2023, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with FLEETCOR Technologies .
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email email@example.com.