Why Is FleetCor Technologies (FLT) Up 13.5% Since Last Earnings Report?
It has been about a month since the last earnings report for FleetCor Technologies (FLT). Shares have added about 13.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is FleetCor Technologies due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
FLEETCOR Surpasses Q1 Earnings & Revenue Estimates
FLEETCOR Technologies reported solid first-quarter 2020 results wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $3.00 per share outpaced the consensus estimate by 8.3% and increased 12.4% year over year. Revenues of $661.09 million beat the consensus mark by 5.2% but increased 6.3% year over year on a reported basis and 5% on a pro-forma and macro-adjusted basis.
Revenues in Detail
Segment-wise, revenues from North America came in at $434.69 million, up 9.6% year over year. Internationally, revenues of $127.42 million increased 6.9% year over year. Revenues from Brazil declined 6.4% to $98.98 million.
Product category-wise, fuel revenues of $292.1 million went up 3% year over year on a reported basis and 2% on a pro-forma and macro-adjusted basis.
Corporate Payments revenues of $119.9 million increased 24% year over year on a reported basis and 20% on a pro-forma and macro-adjusted basis.
Tolls revenues of $83 million declined 7% year over year on a reported basis but improved 10% on a pro-forma and macro-adjusted basis.
Lodging revenues of $57 million increased 36% year over year on a reported basis and 5% on a pro-forma and macro-adjusted basis.
Gift revenues of $42.4 million decreased 12% year over year on a reported basis as well as on a pro-forma and macro-adjusted basis.
Other revenues of $66.7 million increased 5% year over year on a reported basis and remained flat on a pro-forma and macro-adjusted basis.
Operating Results
Operating income decreased 29.3% from the prior-year quarter to $200.98 million. Operating income margin declined to 30.4% from 45.7% in the prior-year quarter.
Balance Sheet & Cash Flow
FLEETCOR exited first-quarter 2020 with cash, cash equivalents and restricted cash of approximately $1.55 billion compared with $1.68 billion at the end of the prior quarter.
The company generated $420.03 million of net cash from operating activities. Capital expenditures totaled $18.26 million. In the reported quarter, FLEETCOR repurchased shares worth $530.24 million.
2020 Guidance
Considering the uncertainty prevailing in the market due to the coronavirus outbreak, FLEETCOR has suspended its full-year 2020 guidance.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month. The consensus estimate has shifted -12.11% due to these changes.
VGM Scores
At this time, FleetCor Technologies has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
FleetCor Technologies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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