A month has gone by since the last earnings report for FleetCor Technologies . Shares have added about 11.7% 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 its most recent earnings report in order to get a better handle on the important catalysts.
FLEETCOR Beats Q3 Earnings Estimates, Revenues Lag
FLEETCOR reported mixed third-quarter 2020 results wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
Adjusted earnings of $2.80 per share outpaced the consensus estimate by 5.3% but decreased 10% year over year. Revenues of $585.3 million missed the consensus mark by 0.1% and decreased 14% year over year on a reported basis and 12% on a pro-forma and macro-adjusted basis.
Quarterly volumes improved sequentially in each line of business, backed by rising existing client usage. New sales performance rose to 80%. Client retention and credit trends were also very encouraging in the reported quarter.
Revenues in Detail
Segment wise, revenues from North America came in at $383.83 million, down 13.3% year over year. Internationally, revenues of $121.86 million decreased 7.5% year over year. Revenues from Brazil declined 25.3% to $79.59 million.
Product-category wise, fuel revenues of $255.1 million went down 14% year over year on a reported basis and 11% on a pro-forma and macro-adjusted basis.
Corporate Payments revenues of $106.5 million decreased 11% year over year on a reported basis as well as on a pro-forma and macro-adjusted basis.
Tolls revenues of $67.6 million declined 24% year over year on a reported basis but improved 3% on a pro-forma and macro-adjusted basis.
Lodging revenues of $52.9 million decreased 6% year over year on a reported basis and 32% on a pro-forma and macro-adjusted basis.
Gift revenues of $39.1 million decreased 19% year over year on a reported as well as a pro-forma and macro-adjusted basis.
Other revenues of $64.1 million decreased 11% year over year on a reported and 9% on a pro-forma and macro-adjusted basis.
Operating Results
Operating income decreased 19.6% from the prior-year quarter to $264.53 million. Operating income margin declined to 45.2% from 48.3% in the prior-year quarter.
Balance Sheet & Cash Flow
FLEETCOR exited third-quarter 2020 with cash, cash equivalents and restricted cash of $1.37 billion compared with $1.19 billion at the end of the prior quarter.
The company generated $412.53 million of net cash from operating activities. Capital expenditures totaled $18.15 million.
In the reported quarter, FLEETCOR repurchased shares worth $231.05 million. The company’s board of directors approved an increase in the previously announced share-repurchase program by an additional $1 billion. Inclusive of the raised share buyback approval, the company may repurchase shares worth $1.056 billion any time prior to Feb 1, 2023.
2020 Guidance
Considering the uncertainty in market recoveries due to the coronavirus outbreak, FLEETCOR has not updated its full-year 2020 guidance.
The company is hopeful of lowering its expenses 10 from last year in order to balance current profitability with investment for future growth
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
VGM Scores
At this time, FleetCor Technologies has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, 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
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, FleetCor Technologies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Image: Bigstock
FleetCor Technologies (FLT) Up 11.7% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for FleetCor Technologies . Shares have added about 11.7% 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 its most recent earnings report in order to get a better handle on the important catalysts.
FLEETCOR Beats Q3 Earnings Estimates, Revenues Lag
FLEETCOR reported mixed third-quarter 2020 results wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
Adjusted earnings of $2.80 per share outpaced the consensus estimate by 5.3% but decreased 10% year over year. Revenues of $585.3 million missed the consensus mark by 0.1% and decreased 14% year over year on a reported basis and 12% on a pro-forma and macro-adjusted basis.
Quarterly volumes improved sequentially in each line of business, backed by rising existing client usage. New sales performance rose to 80%. Client retention and credit trends were also very encouraging in the reported quarter.
Revenues in Detail
Segment wise, revenues from North America came in at $383.83 million, down 13.3% year over year. Internationally, revenues of $121.86 million decreased 7.5% year over year. Revenues from Brazil declined 25.3% to $79.59 million.
Product-category wise, fuel revenues of $255.1 million went down 14% year over year on a reported basis and 11% on a pro-forma and macro-adjusted basis.
Corporate Payments revenues of $106.5 million decreased 11% year over year on a reported basis as well as on a pro-forma and macro-adjusted basis.
Tolls revenues of $67.6 million declined 24% year over year on a reported basis but improved 3% on a pro-forma and macro-adjusted basis.
Lodging revenues of $52.9 million decreased 6% year over year on a reported basis and 32% on a pro-forma and macro-adjusted basis.
Gift revenues of $39.1 million decreased 19% year over year on a reported as well as a pro-forma and macro-adjusted basis.
Other revenues of $64.1 million decreased 11% year over year on a reported and 9% on a pro-forma and macro-adjusted basis.
Operating Results
Operating income decreased 19.6% from the prior-year quarter to $264.53 million. Operating income margin declined to 45.2% from 48.3% in the prior-year quarter.
Balance Sheet & Cash Flow
FLEETCOR exited third-quarter 2020 with cash, cash equivalents and restricted cash of $1.37 billion compared with $1.19 billion at the end of the prior quarter.
The company generated $412.53 million of net cash from operating activities. Capital expenditures totaled $18.15 million.
In the reported quarter, FLEETCOR repurchased shares worth $231.05 million. The company’s board of directors approved an increase in the previously announced share-repurchase program by an additional $1 billion. Inclusive of the raised share buyback approval, the company may repurchase shares worth $1.056 billion any time prior to Feb 1, 2023.
2020 Guidance
Considering the uncertainty in market recoveries due to the coronavirus outbreak, FLEETCOR has not updated its full-year 2020 guidance.
The company is hopeful of lowering its expenses 10 from last year in order to balance current profitability with investment for future growth
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
VGM Scores
At this time, FleetCor Technologies has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, 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
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, FleetCor Technologies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.