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FLEETCOR (FLT) Beats on Q1 Earnings & Revenues, Tweaks EPS View

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FLEETCOR Technologies, Inc.(FLT - Free Report) reported solid first-quarter 2021 results wherein earnings and revenues surpassed the Zacks Consensus Estimate.

Adjusted earnings of $2.82 per share outpaced the consensus estimate by 4.4% but decreased 6% year over year. The reported figure lies above the guidance of $2.60-$2.80.

Revenues of $608.6 million beat the consensus mark by 0.5% but decreased 7.9% year over year on a reported basis and 6% on a pro-forma and macro-adjusted basis.

Quarterly results were weighed down by COVID-19-driven client softness of around 6%. New sales grew 7% year over year and retention continued to improve.

Over the past year, shares of FLEETCOR have gained 16.2%, outperforming the 20.5% surge of the industry it belongs to and 46.8% rally of the Zacks S&P 500 composite.

Revenues in Detail

Segment wise, revenues from North America came in at $402.21 million, down 7.5% year over year. Internationally, revenues of $124.49 million decreased 2.3% year over year. Revenues from Brazil declined 17.2% to $81.92 million.

Product-category wise, fuel revenues of $261.9 million went down 10% year over year on a reported basis and 6% on a pro-forma and macro-adjusted basis.

Corporate Payments revenues of $116.4 million decreased 3% year over year on a reported basis and 5% on a pro-forma and macro-adjusted basis.

Tolls revenues of $69 million declined 17% year over year on a reported basis but improved 3% on a pro-forma and macro-adjusted basis.

Lodging revenues of $59 million grew 4% year over year on a reported basis but decreased 14% on a pro-forma and macro-adjusted basis.

Gift revenues of $43.4 million grew 2% year over year on a reported, as well as on a pro-forma and macro-adjusted basis.

Other revenues of $58.9 million decreased 12% year over year on a reported, as well as on a pro-forma and macro-adjusted basis.

Operating Results

Operating income increased 32.3% from the prior-year quarter to $265.97 million. Operating income margin rose to 43.7% from 30.4% in the prior-year quarter.

FleetCor Technologies, Inc. Price, Consensus and EPS Surprise 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 first-quarter 2021 with cash, cash equivalents and restricted cash of $1.43 billion compared with $1.48 billion at the end of the prior quarter.

The company generated $77.9 million of net cash from operating activities. Capital expenditures totaled $19.5 million.

In the reported quarter, FLEETCOR repurchased shares worth $162 million.

Second-Quarter 2021 Outlook

For the second quarter of 2021, FLEETCOR expects adjusted earnings to be between $2.80 and $3.00 per share. The Zacks Consensus Estimate of $2.90 lies within the guidance.

2021 Guidance

For 2021, FLEETCOR has raised the lower end of its guidance for adjusted earnings per share while reaffirming the same for revenues, interest expenses and adjusted tax rate.

Adjusted earnings per share are now anticipated between $12.14 and $12.70 compared with the prior guidance of $11.90-$12.70. The Zacks Consensus Estimate of $12.66 lies within the guidance.

Revenues are anticipated in the range of $2.6-$2.7 billion. The Zacks Consensus Estimate of $2.64 billion 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%.

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

Performance of Other Business Services Companies

Equifax’s (EFX - Free Report) first-quarter 2021 adjusted earnings of $1.97 per share beat the Zacks Consensus Estimate by 29.6% and improved on a year-over-year basis. Revenues of $1.21 billion outpaced the consensus estimate by 7.9% and improved 26.6% year over year on a reported basis as well as on a local-currency basis.

Robert Half’s (RHI - Free Report) first-quarter 2021 earnings of 98 cents per share beat the consensus mark by 22.5% and were up 24.1% year over year. Revenues of $1.4 billion surpassed the consensus mark by 3.3% but declined 7.2% year over year on a reported basis and 7.6% on an adjusted basis.

Omnicom’s (OMC - Free Report) first-quarter 2021 adjusted earnings of $1.33 per share beat the consensus mark by 16.7% and increased 11.8% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3.6% and marginally increased year over year.

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