It has been about a month since the last earnings report for FleetCor Technologies . Shares have lost about 3.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is FleetCor Technologies due for a breakout? 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 drivers.
FLEETCOR Surpasses Q1 Earnings & Revenues Estimates
FLEETCOR Technologies 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.
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.
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.
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.
Revenues are anticipated in the range of $2.6-$2.7 billion.
Interest expenses are expected between $110 million and $120 million. Adjusted tax rate is anticipated between 19.5% and 21.5%.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
At this time, FleetCor Technologies has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, FleetCor Technologies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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FleetCor Technologies (FLT) Down 3.2% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for FleetCor Technologies . Shares have lost about 3.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is FleetCor Technologies due for a breakout? 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 drivers.
FLEETCOR Surpasses Q1 Earnings & Revenues Estimates
FLEETCOR Technologies 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.
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.
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.
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.
Revenues are anticipated in the range of $2.6-$2.7 billion.
Interest expenses are expected between $110 million and $120 million. Adjusted tax rate is anticipated between 19.5% and 21.5%.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
At this time, FleetCor Technologies has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, FleetCor Technologies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.