FLEETCOR Technologies, Inc.( FLT Quick Quote 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 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.
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
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