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FLEETCOR (FLT) Q2 Earnings Beat Estimates, Revenues Lag
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FLEETCOR Technologies, Inc. reported mixed second-quarter 2020 results wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
Adjusted earnings of $2.28 per share outpaced the consensus estimate by 5.6% but decreased 20% year over year. Revenues of $525.1 million missed the consensus mark by 0.1% and decreased 19% year over year on a reported basis and 17% on a pro-forma and macro-adjusted basis.
The quarterly performance was significantly impacted by coronavirus-related shutdowns across the globe. Volumes reduced initially in the second quarter with most businesses’ volumes starting to recover as the quarter progressed. The macro-economic environment unfavorably impacted revenues during the reported quarter by almost $22 million, thanks to unfavorable foreign-exchange rates.
So far this year, shares of FLEETCOR have lost 8.6%, against 4.4% growth of the industry it belongs to and 4% increase of the Zacks S&P 500 composite.
Revenues in Detail
Segment wise, revenues from North America came in at $357.43 million, down 14.5% year over year. Internationally, revenues of $92.57 million decreased 26.3% year over year. Revenues from Brazil declined 27.5% to $75.15 million.
Product-category wise, fuel revenues of $249.8 million went down 15% year over year on a reported basis and 16% on a pro-forma and macro-adjusted basis.
Corporate Payments revenues of $92.6 million decreased 18% year over year on a reported basis and 17% on a pro-forma and macro-adjusted basis.
Tolls revenues of $64.8 million declined 25% year over year on a reported basis but improved 3% on a pro-forma and macro-adjusted basis.
Lodging revenues of $40.6 million decreased 19% year over year on a reported basis and 37% on a pro-forma and macro-adjusted basis.
Gift revenues of $26.5 million decreased 26% year over year on a reported as well as a pro-forma and macro-adjusted basis.
Other revenues of $50.8 million decreased 25% year over year on a reported as well as a pro-forma and macro-adjusted basis.
Operating Results
Operating income decreased 28.4% from the prior-year quarter to $212.81 million. Operating income margin declined to 40.5% from 45.9% in the prior-year quarter.
FleetCor Technologies, Inc. Price, Consensus and EPS Surprise
FLEETCOR exited second-quarter 2020 with cash, cash equivalents and restricted cash of $1.19 billion compared with $1.55 billion at the end of the prior quarter.
The company generated $382.14 million of net cash from operating activities. Capital expenditures totaled $18.61 million. In the reported quarter, FLEETCOR repurchased shares worth $27.12 million.
2020 Guidance
Considering the uncertainty in market recoveries due to the coronavirus outbreak, FLEETCOR has not updated its full-year 2020 guidance.
The company expects volume in the second half of the year to improve as the economy improves. However, revenues in the second half of the year are anticipated to recover more slowly than volume, since bigger enterprise accounts with lower rates will recover faster than the company’s SMB portfolio. Also, lower-than-expected fuel prices and foreign-exchange rates are expected to weigh on revenues.
Equifax (EFX - Free Report) reported better-than-expected second-quarter 2020 adjusted earnings of $1.60 per share, whichbeat the Zacks Consensus Estimate by 22.1% and improved 14.3% on a year-over-year basis. The reported figure exceeded the guided range of 78-88 cents.
IQVIA Holdings (IQV - Free Report) reported second-quarter 2020 adjusted earnings per share of $1.18, which beat the consensus mark by 12.4% but decreased 22.9% on a year-over-year basis. The reported figure exceeded the guided range of $1.00-$1.09.
Robert Half (RHI - Free Report) reported second-quarter 2020 earnings of 41 cents per share that beat the consensus mark by 17% but were down 58% year over year.
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FLEETCOR (FLT) Q2 Earnings Beat Estimates, Revenues Lag
FLEETCOR Technologies, Inc. reported mixed second-quarter 2020 results wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
Adjusted earnings of $2.28 per share outpaced the consensus estimate by 5.6% but decreased 20% year over year. Revenues of $525.1 million missed the consensus mark by 0.1% and decreased 19% year over year on a reported basis and 17% on a pro-forma and macro-adjusted basis.
The quarterly performance was significantly impacted by coronavirus-related shutdowns across the globe. Volumes reduced initially in the second quarter with most businesses’ volumes starting to recover as the quarter progressed. The macro-economic environment unfavorably impacted revenues during the reported quarter by almost $22 million, thanks to unfavorable foreign-exchange rates.
So far this year, shares of FLEETCOR have lost 8.6%, against 4.4% growth of the industry it belongs to and 4% increase of the Zacks S&P 500 composite.
Revenues in Detail
Segment wise, revenues from North America came in at $357.43 million, down 14.5% year over year. Internationally, revenues of $92.57 million decreased 26.3% year over year. Revenues from Brazil declined 27.5% to $75.15 million.
Product-category wise, fuel revenues of $249.8 million went down 15% year over year on a reported basis and 16% on a pro-forma and macro-adjusted basis.
Corporate Payments revenues of $92.6 million decreased 18% year over year on a reported basis and 17% on a pro-forma and macro-adjusted basis.
Tolls revenues of $64.8 million declined 25% year over year on a reported basis but improved 3% on a pro-forma and macro-adjusted basis.
Lodging revenues of $40.6 million decreased 19% year over year on a reported basis and 37% on a pro-forma and macro-adjusted basis.
Gift revenues of $26.5 million decreased 26% year over year on a reported as well as a pro-forma and macro-adjusted basis.
Other revenues of $50.8 million decreased 25% year over year on a reported as well as a pro-forma and macro-adjusted basis.
Operating Results
Operating income decreased 28.4% from the prior-year quarter to $212.81 million. Operating income margin declined to 40.5% from 45.9% in the prior-year quarter.
FleetCor Technologies, Inc. Price, Consensus and EPS Surprise
FleetCor Technologies, Inc. price-consensus-eps-surprise-chart | FleetCor Technologies, Inc. Quote
Balance Sheet & Cash Flow
FLEETCOR exited second-quarter 2020 with cash, cash equivalents and restricted cash of $1.19 billion compared with $1.55 billion at the end of the prior quarter.
The company generated $382.14 million of net cash from operating activities. Capital expenditures totaled $18.61 million. In the reported quarter, FLEETCOR repurchased shares worth $27.12 million.
2020 Guidance
Considering the uncertainty in market recoveries due to the coronavirus outbreak, FLEETCOR has not updated its full-year 2020 guidance.
The company expects volume in the second half of the year to improve as the economy improves. However, revenues in the second half of the year are anticipated to recover more slowly than volume, since bigger enterprise accounts with lower rates will recover faster than the company’s SMB portfolio. Also, lower-than-expected fuel prices and foreign-exchange rates are expected to weigh on revenues.
Currently, FLEETCOR carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
Equifax (EFX - Free Report) reported better-than-expected second-quarter 2020 adjusted earnings of $1.60 per share, whichbeat the Zacks Consensus Estimate by 22.1% and improved 14.3% on a year-over-year basis. The reported figure exceeded the guided range of 78-88 cents.
IQVIA Holdings (IQV - Free Report) reported second-quarter 2020 adjusted earnings per share of $1.18, which beat the consensus mark by 12.4% but decreased 22.9% on a year-over-year basis. The reported figure exceeded the guided range of $1.00-$1.09.
Robert Half (RHI - Free Report) reported second-quarter 2020 earnings of 41 cents per share that beat the consensus mark by 17% but were down 58% year over year.
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Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.
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