FLEETCOR Technologies, Inc. FLT 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 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.
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.
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 and Republic Services RSG, each scheduled to release results on Feb 13.
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