It has been about a month since the last earnings report for FleetCor Technologies . Shares have lost about 14% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is FleetCor Technologies due for a breakout? 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 Q3 Earnings & Revenues Estimates
FLEETCOR Technologies reported solid third-quarter 2021 results as both earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $3.52 per share outpaced the consensus estimate by 0.9% and increased 25.7% year over year. The reported figure lies within the guidance of $3.35-$3.55.
Revenues of $755.5 million beat the consensus mark by 2.3% and increased 29.1% year over year on a reported basis and 17% on a pro-forma and macro-adjusted basis.
Let’s check out the numbers in detail:
Revenues in Detail
Segment wise, revenues from North America came in at $520.54 million, up 35.6% year over year. Internationally, revenues of $140.05 million increased 14.9% year over year. Revenues from Brazil grew 19.2% to $94.89 million.
Product-category wise, fuel revenues of $306.8 million went up 20% year over year on a reported basis and 13% on a pro-forma and macro-adjusted basis.
Corporate Payments revenues of $168.7 million increased 58% year over year on a reported basis and 22% on a pro-forma and macro-adjusted basis.
Tolls revenues of $79 million improved 17% year over year on a reported basis and 14% on a pro-forma and macro-adjusted basis.
Lodging revenues of $85.2 million grew 61% year over year on a reported basis and 40% on a pro-forma and macro-adjusted basis.
Gift revenues of $48.6 million grew 25% year over year on a reported as well as on a pro-forma and macro-adjusted basis.
Other revenues of $67.2 million increased 5% year over year on a reported and 2% on a pro-forma and macro-adjusted basis.
Operating Results
Operating income increased 28% from the prior-year quarter’s level to $338.69 million. Operating income margin came in at 44.8% from 45.2% in the prior-year quarter.
Balance Sheet & Cash Flow
FLEETCOR exited third-quarter 2021 with cash, cash equivalents and restricted cash of $2.01 billion compared with $2.06 billion at the end of the prior quarter.
The company generated $243.09 million of net cash from operating activities. Capital expenditures totaled $28.69 million.
In the reported quarter, FLEETCOR repurchased shares worth $405.69 million.
2021 Guidance
For 2021, FLEETCOR raised its guidance.
Adjusted earnings per share are now anticipated between $13 and $13.10 compared with the prior guidance of $12.80-$13.
Revenues are now anticipated in the range of $2.785-$2.805 billion compared with the prior guidance of $2.74-$2.79 billion.
Adjusted tax rate is now anticipated between 22.5% and 23.5% compared with the prior guidance of 21.5-22.5%. Interest expenses are still expected between $120 million and $125 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
Currently, FleetCor Technologies has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, 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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It has been about a month since the last earnings report for FleetCor Technologies . Shares have lost about 14% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is FleetCor Technologies due for a breakout? 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 Q3 Earnings & Revenues Estimates
FLEETCOR Technologies reported solid third-quarter 2021 results as both earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $3.52 per share outpaced the consensus estimate by 0.9% and increased 25.7% year over year. The reported figure lies within the guidance of $3.35-$3.55.
Revenues of $755.5 million beat the consensus mark by 2.3% and increased 29.1% year over year on a reported basis and 17% on a pro-forma and macro-adjusted basis.
Let’s check out the numbers in detail:
Revenues in Detail
Segment wise, revenues from North America came in at $520.54 million, up 35.6% year over year. Internationally, revenues of $140.05 million increased 14.9% year over year. Revenues from Brazil grew 19.2% to $94.89 million.
Product-category wise, fuel revenues of $306.8 million went up 20% year over year on a reported basis and 13% on a pro-forma and macro-adjusted basis.
Corporate Payments revenues of $168.7 million increased 58% year over year on a reported basis and 22% on a pro-forma and macro-adjusted basis.
Tolls revenues of $79 million improved 17% year over year on a reported basis and 14% on a pro-forma and macro-adjusted basis.
Lodging revenues of $85.2 million grew 61% year over year on a reported basis and 40% on a pro-forma and macro-adjusted basis.
Gift revenues of $48.6 million grew 25% year over year on a reported as well as on a pro-forma and macro-adjusted basis.
Other revenues of $67.2 million increased 5% year over year on a reported and 2% on a pro-forma and macro-adjusted basis.
Operating Results
Operating income increased 28% from the prior-year quarter’s level to $338.69 million. Operating income margin came in at 44.8% from 45.2% in the prior-year quarter.
Balance Sheet & Cash Flow
FLEETCOR exited third-quarter 2021 with cash, cash equivalents and restricted cash of $2.01 billion compared with $2.06 billion at the end of the prior quarter.
The company generated $243.09 million of net cash from operating activities. Capital expenditures totaled $28.69 million.
In the reported quarter, FLEETCOR repurchased shares worth $405.69 million.
2021 Guidance
For 2021, FLEETCOR raised its guidance.
Adjusted earnings per share are now anticipated between $13 and $13.10 compared with the prior guidance of $12.80-$13.
Revenues are now anticipated in the range of $2.785-$2.805 billion compared with the prior guidance of $2.74-$2.79 billion.
Adjusted tax rate is now anticipated between 22.5% and 23.5% compared with the prior guidance of 21.5-22.5%. Interest expenses are still expected between $120 million and $125 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
Currently, FleetCor Technologies has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, FleetCor Technologies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Free Report – The Bitcoin Profit Phenomenon
Zacks Investment Research has released a Special Report to help you pursue massive profits from the world’s first and largest decentralized form of money.
No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%.
Zacks predicts another significant surge. Click below for Bitcoin: A Tumultuous Yet Resilient History.
Download Now – Today It’s FREE >>