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FLEETCOR (FLT) Q1 Earnings & Revenues Beat Mark, View Up

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FLEETCOR Technologies, Inc.(FLT - Free Report) reported solid first-quarter 2022 results as both earnings and revenues surpassed the Zacks Consensus Estimate.

Adjusted earnings of $3.65 per share outpaced the consensus estimate by 3.4% and increased 29.4% year over year. The reported figure exceeded the company-guided range of $3.45-$3.55.

Revenues of $789.2 million beat the consensus mark by 4.3% and increased 30% year over year on a reported basis and 15% on a pro-forma and macro-adjusted basis. The reported figure exceeded the company-guided range of $740-$760 million.

So far this year, shares of FLEETCOR have lost 8.9% compared with 2.3% fall of the industry it belongs to and 9.8% decline of the Zacks S&P 500 composite.

Zacks Investment Research
Image Source: Zacks Investment Research

Let’s check out the numbers in detail:

Revenues in Detail

Segment wise, revenues from North America came in at $547.38 million, up 36.1% year over year. Internationally, revenues of $139.32 million increased 11.9% year over year. Revenues from Brazil grew 25.2% to $102.54 million.

Product-category wise, fuel revenues of $318.5 million went up 22% year over year on a reported basis and 14% on a pro-forma and macro-adjusted basis.

Corporate Payments revenues of $183.8 million increased 58% year over year on a reported basis and 19% on a pro-forma and macro-adjusted basis.

Tolls revenues of $84.9 million improved 23% year over year on a reported basis and 18% on a pro-forma and macro-adjusted basis.

Lodging revenues of $94.6 million grew 60% year over year on a reported basis and 22% on a pro-forma and macro-adjusted basis.

Gift revenues of $43.5 million grew marginally year over year on a reported and 1% on a pro-forma and macro-adjusted basis.

Other revenues of $63.9 million increased 9% year over year on a reported as well as on a pro-forma and macro-adjusted basis.

Operating Results

Operating income increased 19.5% from the prior-year quarter’s level to $317.72 million. Operating income margin came in at 40.3% from 43.7% 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 2022 with cash, cash equivalents and restricted cash of $2.09 billion compared with $2.25 billion at the end of the prior quarter.

The company used $112.25 million of net cash from operating activities. Capital expenditures totaled $31.39 million.

In the reported quarter, FLEETCOR repurchased shares worth $422.74 million.

Second-Quarter 2022 Guidance

For second-quarter 2022, FLEETCOR expects revenues between $805 million and $825 million. The Zacks Consensus Estimate of $782.38 million lies below the guidance.

Adjusted earnings per share are anticipated to be between $3.80 and $3.90. The Zacks Consensus Estimate of $3.70 lies below the guidance.

2022 Guidance

FLEETCOR has raised its guidance for 2022. Adjusted earnings per share are now anticipated to be between $15.45 and $15.75 compared with the prior-guided range of $15-$15.50. The Zacks Consensus Estimate of $15.49 lies within the updated guidance.

Revenues are now anticipated between $3.335 billion and $3.385 billion compared with the prior-guided range of $3.19-$3.25 billion. The Zacks Consensus Estimate of $3.25 billion lies below the updated guidance.

Adjusted tax rate is now anticipated to be between 26% and 27% compared with the prior-guided range of 24%-26%. Interest expenses are now expected between $105 million and $115 million compared with the prior-guided range of$90-$100 million.

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

Omnicom Group (OMC - Free Report) reported impressive first-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.

Omnicom’s earnings of $1.39 per share beat the consensus mark by 8.6% and increased 4.5% year over year, driven by strong margin performance.

Omnicom’s total revenues of $3.4 billion surpassed the consensus estimate by 5.4% but declined slightly year over year.

Equifax (EFX - Free Report) reported better-than-expected first-quarter 2022 results.

Equifax’s adjusted earnings of $2.22 per share beat the Zacks Consensus Estimate by 3.3% and improved 13% on a year-over-year basis. The reported figure exceeded the guided range of $2.08-$2.18. 

Equifax’s revenues of $1.36 billion outpaced the consensus estimate by 2.4% and improved 12.4% year over year on a reported basis and 13% on a local-currency basis. The reported figure exceeded the guided range of $1.32-$1.34 billion.

Waste Management (WM - Free Report) reported solid first-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.

Waste Management’s adjusted earnings per share of $1.29 beat the Zacks Consensus Estimate by 15.2% and improved 21.7% year over year.

Waste Management’s total revenues of $4.66 billion beat the consensus estimate by 4.6% and increased 13.4% year over year.