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FLEETCOR Technologies, Inc. reported mixed fourth-quarter 2019 results wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
Adjusted earnings of $3.17 per share outpaced the consensus estimate by 0.9% and increased 14% year over year. Revenues of $681.05 million missed the consensus mark by 0.7% but increased 9% year over year on a reported basis and 10% on a pro-forma and macro-adjusted basis.
Organic revenues rose 10% in the reported quarter, driven by solid double-digit growth across the company’s product categories namely fuel, corporate payments, tolls and lodging. Its fuel card business was up 9%, corporate payments increased 14%, toll business grew 17% and lodging business increased 14% organically.
In the reported quarter, new sales or new bookings increased 13%, client revenue retention remained steady at over 91% and the company’s same-store sales were impacted mainly by the weak trucking vertical.
Over the past year, shares of FLEETCOR have gained 41.2%, compared with the 41.5% growth of the industry it belongs to and 21.9% increase in the Zacks S&P 500 composite.
Revenues in Detail
Segment-wise, revenues from North America came in at $451 million, up 6.5% year over year. Internationally, revenues of $247.88 million increased 12.7% year over year.
Product category-wise, fuel revenues of $299.3 million were almost flat year over year on a reported basis and improved 9% on a pro-forma and macro-adjusted basis.
Corporate Payments revenues of $140.3 million increased 21% year over year on a reported basis and 14% on a pro-forma and macro-adjusted basis.
Tolls revenues of $93.3 million improved 8% year over year on a reported basis and 17% on a pro-forma and macro-adjusted basis.
Lodging revenues of $64.2 million increased 48% year over year on a reported basis and 14% on a pro-forma and macro-adjusted basis.
Gift revenues of $47.7 million decreased 1% year over year on a reported basis and 6% on a pro-forma and macro-adjusted basis.
Other revenues of $54.1 million increased 7% year over year on a reported basis and 12% on a pro-forma and macro-adjusted basis.
Operating Results
Operating income increased 12.7% from the prior-year quarter to $320.80 million. Operating income margin rose to 45.9% from 44.3% in the prior-year quarter.
FleetCor Technologies, Inc. Price, Consensus and EPS Surprise
FLEETCOR exited fourth-quarter 2019 with cash, cash equivalents and restricted cash of approximately $1.68 billion compared with $1.47 billion at the end of the prior quarter.
The company generated $370.94 million of net cash from operating activities. Capital expenditures totaled $26.49 million.
In the reported quarter, FLEETCOR repurchased approximately 2.2 million shares for $632.5 million.
Guidance
For 2020, FLEETCOR unveiled its revenue and adjusted earnings guidance.
Total revenues are anticipated in the range of $2.90-$2.96 billion. The current Zacks Consensus Estimate of $2.93 billion lies within the guidance.
Adjusted earnings are expected in the range of $13.35-$13.75 per share. The current Zacks Consensus Estimate of $13.57 per share lies within the guidance.
Organic revenues are expected to register 9-11% growth.
For first-quarter 2020, adjusted EPS is expected in the range of $2.90-$3.00.The current Zacks Consensus Estimate of $3.08 per share lies above the guidance.
Zacks Rank & Upcoming Releases
Currently, FLEETCOR carries a Zacks Rank #4 (Sell).
Investors interested in the broader Zacks Business Services sector are awaiting fourth-quarter 2019 earnings of key players like Delphi , Waste Management (WM - Free Report) and Republic Services (RSG - Free Report) , each scheduled to release results on Feb 13.
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FLEETCOR (FLT) Tops Q4 Earnings Estimates, Lags Revenues
FLEETCOR Technologies, Inc. reported mixed fourth-quarter 2019 results wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
Adjusted earnings of $3.17 per share outpaced the consensus estimate by 0.9% and increased 14% year over year. Revenues of $681.05 million missed the consensus mark by 0.7% but increased 9% year over year on a reported basis and 10% on a pro-forma and macro-adjusted basis.
Organic revenues rose 10% in the reported quarter, driven by solid double-digit growth across the company’s product categories namely fuel, corporate payments, tolls and lodging. Its fuel card business was up 9%, corporate payments increased 14%, toll business grew 17% and lodging business increased 14% organically.
In the reported quarter, new sales or new bookings increased 13%, client revenue retention remained steady at over 91% and the company’s same-store sales were impacted mainly by the weak trucking vertical.
Over the past year, shares of FLEETCOR have gained 41.2%, compared with the 41.5% growth of the industry it belongs to and 21.9% increase in the Zacks S&P 500 composite.
Revenues in Detail
Segment-wise, revenues from North America came in at $451 million, up 6.5% year over year. Internationally, revenues of $247.88 million increased 12.7% year over year.
Product category-wise, fuel revenues of $299.3 million were almost flat year over year on a reported basis and improved 9% on a pro-forma and macro-adjusted basis.
Corporate Payments revenues of $140.3 million increased 21% year over year on a reported basis and 14% on a pro-forma and macro-adjusted basis.
Tolls revenues of $93.3 million improved 8% year over year on a reported basis and 17% on a pro-forma and macro-adjusted basis.
Lodging revenues of $64.2 million increased 48% year over year on a reported basis and 14% on a pro-forma and macro-adjusted basis.
Gift revenues of $47.7 million decreased 1% year over year on a reported basis and 6% on a pro-forma and macro-adjusted basis.
Other revenues of $54.1 million increased 7% year over year on a reported basis and 12% on a pro-forma and macro-adjusted basis.
Operating Results
Operating income increased 12.7% from the prior-year quarter to $320.80 million. Operating income margin rose to 45.9% from 44.3% in the prior-year quarter.
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 fourth-quarter 2019 with cash, cash equivalents and restricted cash of approximately $1.68 billion compared with $1.47 billion at the end of the prior quarter.
The company generated $370.94 million of net cash from operating activities. Capital expenditures totaled $26.49 million.
In the reported quarter, FLEETCOR repurchased approximately 2.2 million shares for $632.5 million.
Guidance
For 2020, FLEETCOR unveiled its revenue and adjusted earnings guidance.
Total revenues are anticipated in the range of $2.90-$2.96 billion. The current Zacks Consensus Estimate of $2.93 billion lies within the guidance.
Adjusted earnings are expected in the range of $13.35-$13.75 per share. The current Zacks Consensus Estimate of $13.57 per share lies within the guidance.
Organic revenues are expected to register 9-11% growth.
For first-quarter 2020, adjusted EPS is expected in the range of $2.90-$3.00.The current Zacks Consensus Estimate of $3.08 per share lies above the guidance.
Zacks Rank & Upcoming Releases
Currently, FLEETCOR carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors interested in the broader Zacks Business Services sector are awaiting fourth-quarter 2019 earnings of key players like Delphi , Waste Management (WM - Free Report) and Republic Services (RSG - Free Report) , each scheduled to release results on Feb 13.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>