FLEETCOR Technologies, Inc.(FLT - Free Report) reported solid first-quarter 2020 results wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $3.00 per share outpaced the consensus estimate by 8.3% and increased 12.4% year over year. Revenues of $661.09 million beat the consensus mark by 5.2% but increased 6.3% year over year on a reported basis and 5% on a pro-forma and macro-adjusted basis.
The quarterly performance was mainly driven by solid show in January and February. However, the momentum was affected in March due to coronavirus-related shut downs globally. Decline in macro-economic environment unfavorably impacted revenues by almost $6 million compared with the prior-year quarter. Further, the company’s Cambridge business witnessed a $90 million, bad debt loss in the reported quarter, resulting from a large client entering voluntary bankruptcy.
So far this year, shares of FLEETCOR have lost 13.5%, compared with decline of 7.9% for the industry it belongs to and 11.5% decrease of the Zacks S&P 500 composite.
Revenues in Detail
Segment-wise, revenues from North America came in at $434.69 million, up 9.6% year over year. Internationally, revenues of $127.42 million increased 6.9% year over year. Revenues from Brazil declined 6.4% to $98.98 million.
Product category-wise, fuel revenues of $292.1 million went up 3% year over year on a reported basis and 2% on a pro-forma and macro-adjusted basis.
Corporate Payments revenues of $119.9 million increased 24% year over year on a reported basis and 20% on a pro-forma and macro-adjusted basis.
Tolls revenues of $83 million declined 7% year over year on a reported basis but improved 10% on a pro-forma and macro-adjusted basis.
Lodging revenues of $57 million increased 36% year over year on a reported basis and 5% on a pro-forma and macro-adjusted basis.
Gift revenues of $42.4 million decreased 12% year over year on a reported basis as well as on a pro-forma and macro-adjusted basis.
Other revenues of $66.7 million increased 5% year over year on a reported basis and remained flat on a pro-forma and macro-adjusted basis.
Operating income decreased 29.3% from the prior-year quarter to $200.98 million. Operating income margin declined to 30.4% from 45.7% in the prior-year quarter.
Balance Sheet & Cash Flow
FLEETCOR exited first-quarter 2020 with cash, cash equivalents and restricted cash of approximately $1.55 billion compared with $1.68 billion at the end of the prior quarter.
The company generated $420.03 million of net cash from operating activities. Capital expenditures totaled $18.26 million. In the reported quarter, FLEETCOR repurchased shares worth $530.24 million.
Considering the uncertainty prevailing in the market due to the coronavirus outbreak, FLEETCOR has suspended its full-year 2020 guidance.
Currently, FLEETCOR carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
S&P Global Inc.(SPGI - Free Report) reported first-quarter 2020 adjusted earnings per share of $2.73, which beat the consensus mark by 15.7% and improved 29.4% year over year on the back of revenue growth, benefits of productivity initiatives and reduced business travel.
IQVIA Holdings Inc. (IQV - Free Report) reported first-quarter 2020 adjusted earnings per share of $1.50, which beat the consensus mark by 1.4% but decreased 1.9% on a year-over-year basis. The reported figure was within the guided range of $1.46-$1.51
Insperity, Inc.(NSP - Free Report) reported first-quarter 2020 adjusted earnings of $1.70 per share, which beat the consensus mark by 5.6% but decreased 14.1% year over year. The reported figure matched the higher end of the guided range of $1.61-$1.70.
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