Back to top

Image: Shutterstock

FLEETCOR (FLT) Q4 Earnings & Revenues Top Estimates, Fall Y/Y

Read MoreHide Full Article

FLEETCOR Technologies, Inc.(FLT - Free Report) reported solid fourth-quarter 2020 results wherein earnings and revenues surpassed the Zacks Consensus Estimate.

Adjusted earnings of $3.01 per share outpaced the consensus estimate by 6.7% but decreased 5.1% year over year. Revenues of $617.3 million beat the consensus mark by 2.2% but decreased 11.7% year over year on a reported basis and 8% on a pro-forma and macro-adjusted basis.

The company is hopeful about its SMB online bill pay acquisition, which should help enhance its Corporate Payments and Fuel card growth in the days ahead.

Revenues in Detail

Segment wise, revenues from North America came in at $405.59 million, down 10.1% year over year. Internationally, revenues of $121.21 million decreased 10.8% year over year. Revenues from Brazil declined 19.2% to $90.53 million.

Product-category wise, fuel revenues of $260.2 million went down 13% year over year on a reported basis and 10% on a pro-forma and macro-adjusted basis.

Corporate Payments revenues of $115 million decreased 5% year over year on a reported basis and 6% on a pro-forma and macro-adjusted basis.

Tolls revenues of $76.5 million declined 18% year over year on a reported basis but improved 7% on a pro-forma and macro-adjusted basis.

Lodging revenues of $56.6 million decreased 12% year over year on a reported basis and 25% on a pro-forma and macro-adjusted basis.

Gift revenues of $46.4 million decreased 3% year over year on a reported as well as a pro-forma and macro-adjusted basis.

Other revenues of $62.7 million decreased 14% year over year on a reported and 12% on a pro-forma and macro-adjusted basis.

Operating Results

Operating income decreased 8.4% from the prior-year quarter to $293.93 million. Operating income margin rose to 47.6% from 45.9% in the prior-year quarter.

Balance Sheet & Cash Flow

FLEETCOR exited fourth-quarter 2020 with cash, cash equivalents and restricted cash of $1.48 billion compared with $1.37 billion at the end of the prior quarter.

The company generated $253 million of net cash from operating activities. Capital expenditures totaled $23.41 million.

In the reported quarter, FLEETCOR repurchased shares worth $61.5 million.

2021 Guidance

For 2021, FLEETCOR anticipated revenues in the range of $2.6-$2.7 billion. The Zacks Consensus Estimate of $2.65 billion lies within the guidance.

The company is hopeful of witnessing organic revenue growth in the 9% to 13% range.

Adjusted earnings per share are anticipated between $11.90 and $12.70. The Zacks Consensus Estimate of $12.66 lies within the guidance.

Interest expenses are expected between $110 million and $120 million. Adjusted tax rate is anticipated between 19.5% and 21.5%.

First-Quarter 2021 Outlook

For the first quarter of 2021, FLEETCOR expects adjusted earnings to be between $2.60 and $2.80 per share. Seasonality is expected to result in comparatively lower revenues and net income in the quarter. The quarterly performance might also get impacted by the normalization of certain expenses, and incremental growth investments, including those for the Roger acquisition.

Currently, FLEETCOR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Investors interested in the broader Zacks Business Services sector are keenly awaiting fourth-quarter 2020 earnings reports of key players like Waste Connections (WCN - Free Report) , Waste Management (WM - Free Report) and Republic Services (RSG - Free Report) . While Waste Connections will release earnings on Feb 17, Waste Management and Republic Services will report the same on Feb 18 and Feb 22, respectively.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>