FLEETCOR Technologies, Inc. reported solid second-quarter 2022 results as both earnings and revenues surpassed the Zacks Consensus Estimate.  The stock has increased 6.9% since earnings release on Aug 3 in response to stellar results and impressive guidance.

For third-quarter 2022, FLEETCOR expects revenues between $870 million and $890 million. The midpoint of the guided range ($880 million) is above the Zacks Consensus Estimate of $875.7 million. Adjusted earnings per share are anticipated between $4.15 and $4.25. The midpoint of the guided range ($4.20) is above the Zacks Consensus Estimate of $4.19.

FLEETCOR raised its 2022 guidance. Adjusted earnings per share are now anticipated between $15.85 and $16.05, comparing favorably with the prior-guided range of $15.45-$15.75. The midpoint of the guided range ($15.95) is, however, below the Zacks Consensus Estimate of $15.96.

Revenues are now anticipated between $3.38 billion and $3.42 billion, comparing favorably with the prior-guided range of $3.335-$3.385. The midpoint of the guided range ($3.40) is nevertheless below the Zacks Consensus Estimate of $3.41 billion.

Adjusted earnings (excluding 82 cents from non-recurring items) of $4.17 per share outpaced the consensus estimate by 7.2% and increased 32.4% year over year. The reported figure exceeded the guided range of $3.80-$3.90.

Revenues of $861.3 million beat the consensus mark by 5% and increased 29.1% year over year on a reported basis and 17% on a pro-forma and macro-adjusted basis. The reported figure exceeded the guided range of $805-$825 million.

Shares of FLEETCOR have lost 13.6% over the past year compared with the 25.4% fall of the industry it belongs to.

Let’s check out the numbers in detail:

Revenues in Detail

Segment-wise, revenues from North America came in at $601.7 million, up 35.7% year over year. Internationally, revenues of $147.7 million increased 6.8% year over year. Revenues from Brazil grew 30.5% to $111.8 million.

Product-category-wise, fuel revenues of $347 million went up 18% year over year on a reported basis and 7% on a pro-forma and macro-adjusted basis.

Corporate Payments revenues of $189.7 million increased 35% year over year on a reported basis and 18% on a pro-forma and macro-adjusted basis.

Tolls revenues of $91.2 million improved 28% year over year on a reported basis and 19% on a pro-forma and macro-adjusted basis.

Lodging revenues of $116.9 million grew 88% year over year on a reported basis and 42% on a pro-forma and macro-adjusted basis.

Gift revenues of $51.7 million grew 60% year over year on a reported and 63% on a pro-forma and macro-adjusted basis.

Other revenues of $65 million decreased 2% year over year on a reported but inched up 1% on a pro-forma and macro-adjusted basis.

Operating Results

Operating income increased 24.5% from the prior-year quarter’s level to $370.5 million. Operating income margin fell 43% from 44.6% in the prior-year quarter.

Balance Sheet & Cash Flow

FLEETCOR exited second-quarter 2022 with cash, cash equivalents and restricted cash of $1.42 billion compared with $2.09 billion at the end of the prior quarter.

FLT provided $70.4 million of net cash from operating activities. Capital expenditures totaled $35.23 million.

In the reported quarter, FLEETCOR repurchased shares worth $372.56 million.

2022 Guidance

Adjusted tax rate is now anticipated between 26.5% and 27.5% compared with the prior-guided range of 26-27%. Interest expenses are now expected between $145 million and $155 million compared with the prior-guided range of $105-$115 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.

Performances of Some Other Business Services Companies

Equifax (EFX Quick QuoteEFX - Free Report) reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same. 

EFX’s adjusted earnings of $2.09 per share beat the Zacks Consensus Estimate by 3% and improved 5.6% on a year-over-year basis. Revenues of $1.32 billion missed the consensus estimate marginally but improved 6.6% year over year.

IQVIA Holdings (IQV Quick QuoteIQV - Free Report) reported solid second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.

IQV’s adjusted earnings per share of $2.44 beat the consensus mark by 2.1% and improved 15% on a year-over-year basis. Total revenues of $3.54 billion outpaced the consensus estimate by 1.2% and increased 3% year over year.

Omnicom Group (OMC Quick QuoteOMC - Free Report) reported impressive second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.

OMC’s earnings of $1.68 per share beat the consensus mark by 7.7% and increased 15.1% year over year, driven by a strong margin performance. Total revenues of $3.6 billion surpassed the consensus estimate by 4.4% but declined slightly year over year.