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Why Is FleetCor Technologies (FLT) Up 11.9% Since Last Earnings Report?
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It has been about a month since the last earnings report for FleetCor Technologies . Shares have added about 11.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is FleetCor Technologies due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
FLEETCOR Meet Q3 Earnings Estimates
FLEETCOR Technologies, Inc. third-quarter 2023 adjusted earnings (excluding 85 cents from non-recurring items) of $4.49 per share came in line with the Zacks Consensus Estimate and grew 5.9% year over year.
Revenues of $970.9 million lagged the consensus mark by 0.9%. The top line, however, increased 8.7% year over year on a reported basis.
Revenues in Detail
Product category-wise, fleet revenues of $365.5 million fell 8% year over year on a reported basis and lagged our estimated $405.7 million.
Corporate Payments revenues of $258.8 million jumped 31% year over year on a reported basis and came ahead of our projection by 21.2%.
Brazil segment’s revenues of $134.2 million improved 24% year over year, surpassing our forecast of $133.2 million.
Lodging revenues of $141.4 million grew 12% year over year on a reported basis and outshined our anticipation by 9.4%.
Other revenues of $71 million climbed 7% year over year on a reported basis but fell short of our estimate of $77.4 million.
Operating Results
Operating income rose 14% from the prior-year levels to $444.9 million. Operating income margin expanded 220 basis points to 45.8% from a year ago.
Balance Sheet & Cash Flow
FLEETCOR exited third-quarter 2023 with cash, cash equivalents and restricted cash of $1.09 billion compared with $1.25 billion at the end of the prior quarter.
FLT provided $77.2 million in net cash from operating activities. Capital expenditures totaled $38.3 million.
Revenues are expected to be between $953 million and $983 million. The midpoint ($968 million) of the guided range is below the Zacks Consensus Estimate of $980.06 million.
Adjusted earnings per share are suggested in the range of $4.34-$4.64. The midpoint of the guided range ($4.49) meets the Zacks Consensus Estimate.
Latest 2023 View
Adjusted earnings per share are anticipated to be between $16.82 and $17.12 compared with the prior projection of $17.09 and $17.35.
Revenues are now forecast in the $3.774-$3.804 billion band (prior view: $3.84-$3.86 billion).
Interest expenses are now expected to be between $340 million and $350 million, rising from the prior expectation of $330 million and $340 million.
Tax rate is projected to be approximately between 26% and 27%.
Weighted average fuel prices are suggested to be around $3.96 per gallon in the United States.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
Currently, 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 trending downward for the stock, and the magnitude of these revisions has been net zero. Notably, FleetCor Technologies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
FleetCor Technologies is part of the Zacks Financial Transaction Services industry. Over the past month, Western Union (WU - Free Report) , a stock from the same industry, has gained 1.2%. The company reported its results for the quarter ended September 2023 more than a month ago.
Western Union reported revenues of $1.1 billion in the last reported quarter, representing a year-over-year change of +0.8%. EPS of $0.43 for the same period compares with $0.42 a year ago.
Western Union is expected to post earnings of $0.36 per share for the current quarter, representing a year-over-year change of +12.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Western Union. Also, the stock has a VGM Score of A.
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Why Is FleetCor Technologies (FLT) Up 11.9% Since Last Earnings Report?
It has been about a month since the last earnings report for FleetCor Technologies . Shares have added about 11.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is FleetCor Technologies due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
FLEETCOR Meet Q3 Earnings Estimates
FLEETCOR Technologies, Inc. third-quarter 2023 adjusted earnings (excluding 85 cents from non-recurring items) of $4.49 per share came in line with the Zacks Consensus Estimate and grew 5.9% year over year.
Revenues of $970.9 million lagged the consensus mark by 0.9%. The top line, however, increased 8.7% year over year on a reported basis.
Revenues in Detail
Product category-wise, fleet revenues of $365.5 million fell 8% year over year on a reported basis and lagged our estimated $405.7 million.
Corporate Payments revenues of $258.8 million jumped 31% year over year on a reported basis and came ahead of our projection by 21.2%.
Brazil segment’s revenues of $134.2 million improved 24% year over year, surpassing our forecast of $133.2 million.
Lodging revenues of $141.4 million grew 12% year over year on a reported basis and outshined our anticipation by 9.4%.
Other revenues of $71 million climbed 7% year over year on a reported basis but fell short of our estimate of $77.4 million.
Operating Results
Operating income rose 14% from the prior-year levels to $444.9 million. Operating income margin expanded 220 basis points to 45.8% from a year ago.
Balance Sheet & Cash Flow
FLEETCOR exited third-quarter 2023 with cash, cash equivalents and restricted cash of $1.09 billion compared with $1.25 billion at the end of the prior quarter.
FLT provided $77.2 million in net cash from operating activities. Capital expenditures totaled $38.3 million.
Revenues are expected to be between $953 million and $983 million. The midpoint ($968 million) of the guided range is below the Zacks Consensus Estimate of $980.06 million.
Adjusted earnings per share are suggested in the range of $4.34-$4.64. The midpoint of the guided range ($4.49) meets the Zacks Consensus Estimate.
Latest 2023 View
Adjusted earnings per share are anticipated to be between $16.82 and $17.12 compared with the prior projection of $17.09 and $17.35.
Revenues are now forecast in the $3.774-$3.804 billion band (prior view: $3.84-$3.86 billion).
Interest expenses are now expected to be between $340 million and $350 million, rising from the prior expectation of $330 million and $340 million.
Tax rate is projected to be approximately between 26% and 27%.
Weighted average fuel prices are suggested to be around $3.96 per gallon in the United States.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
Currently, 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 trending downward for the stock, and the magnitude of these revisions has been net zero. Notably, FleetCor Technologies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
FleetCor Technologies is part of the Zacks Financial Transaction Services industry. Over the past month, Western Union (WU - Free Report) , a stock from the same industry, has gained 1.2%. The company reported its results for the quarter ended September 2023 more than a month ago.
Western Union reported revenues of $1.1 billion in the last reported quarter, representing a year-over-year change of +0.8%. EPS of $0.43 for the same period compares with $0.42 a year ago.
Western Union is expected to post earnings of $0.36 per share for the current quarter, representing a year-over-year change of +12.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Western Union. Also, the stock has a VGM Score of A.