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FLEETCOR (FLT) Q1 Revenues and Earnings Surpass Estimates

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FLEETCOR Technologies, Inc.  reported impressive first-quarter 2023 results wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.   

Adjusted earnings (excluding 92 cents from non-recurring items) of $3.8 per share outpaced the Zacks Consensus Estimate by 3% and our estimate by 3.3%. Earnings grew 4.1% year over year.  

Revenues of $901.3 million beat the Zacks Consensus Estimate and our estimate by 2.3% and increased 14.2% year over year on a reported basis and 12% on an organic basis.  

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

 

Let’s delve deeper.

Revenues in Detail

Product-category-wise, fleet revenues of $372.7 million rose 6% year over year on a reported basis and 3% on an organic basis.  The Corporate Payments segment’s revenues of $227.2 million increased 16% year over year on a reported basis and 19% on an organic basis.

Brazil segment’s revenues of $121.7 million improved 19% year over year on a reported basis and 18% on an organic basis. The Lodging segment’s revenues of $122.3 million grew 29% year over year on a reported basis and 26% on an organic basis. The Other segment’s revenues of $57.3 million increased 1% year over year on a reported and surged 2% on an organic basis.

Operating Results

Operating income increased 18% from the prior-year quarter’s level to $375.2 million. The operating income margin fell 130 basis points to 41.6%, compared with the prior-year quarter.

Balance Sheet & Cash Flow

FLEETCOR exited first-quarter 2023 with cash, cash equivalents and restricted cash of $1.27 billion, compared with $1.44 billion at the end of the prior quarter.

FLT provided $327.7 million in net cash from operating activities. Capital expenditures totaled $36.7 million.

Q2 Guidance

Revenues are expected to be between $930 million and $950 million. The midpoint ($940 million) of the guided range is below the Zacks Consensus Estimate of $946.3 million.

Adjusted earnings per share is expected to be between $4.02 and $4.22. The Zacks Consensus Estimate of $4.23 per share is pegged above the guided range.

Updated 2023 Guidance

Adjusted earnings per share are still anticipated between $16.95 and $17.35. The midpoint ($17.15) of the guided range is above the Zacks Consensus Estimate of $16.99.

Revenues are now anticipated between $3.82 billion and $3.86 billion. The Zacks Consensus Estimate of $3.81 billion is pegged below the midpoint ($3.84 billion) of the guided range.

Interest expenses are now expected between $310 million and $330 million. The tax rate is expected to be approximately between 26% and 27%. Weighted average fuel prices are expected to be around $3.99 per gallon in US.

Currently, FLEETCOR carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Equifax (EFX - Free Report) reported better-than-expected first-quarter 2023 results. Adjusted earnings (excluding 52 cents from non-recurring items) came in at $1.43 per share, beating the Zacks Consensus Estimate by 4.4% but declining 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% on a reported basis from the year-ago figure. The top line was down 3% on a local currency basis.

Omnicom (OMC - Free Report) reported better-than-expected first-quarter 2023 results. OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimates by 11.4%. Earnings per share increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.

Fiserv reported impressive first-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Adjusted earnings per share (excluding 69 cents from non-recurring items) of $1.58 increased 12.9% year over year, beating the consensus mark by 1.3%. Earnings beat our estimate by 2.6%. Adjusted revenues of $4.28 billion beat the Zacks Consensus Estimate by 3% and increased 9.5% year over year. Revenues surpassed our estimates by 4.65%.


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