FLEETCOR Technologies, Inc. FLT reported strong results in the second quarter of 2022, with earnings and revenue beating Zacks’ consensus estimate. The stock has risen 6.9% since the August 3 earnings release in response to stellar results and impressive guidance.
For the third quarter of 2022, FLEETCOR expects revenue of between $870 million and $890 million. The midpoint of the guided range ($880 million) is above the Zacks consensus estimate of $875.7 million. Adjusted earnings per share are expected between $4.15 and $4.25. The midpoint of the guided range ($4.20) is above the Zacks consensus estimate of $4.19.
FLEETCOR has raised its 2022 guidance. Adjusted earnings per share is now forecast between $15.85 and $16.05, comparing favorably to the prior range of $15.45 to $15.75. The midpoint of the guided range ($15.95), however, is below the Zacks consensus estimate of $15.96.
Revenue is now forecast between $3.38 billion and $3.42 billion, which compares favorably to the prior range of $3.335 to $3.385. The midpoint of the guided range ($3.40) is nonetheless below the Zacks consensus estimate of $3.41 billion.
Adjusted earnings (excluding 82 cents of one-time items) of $4.17 per share beat the consensus estimate of 7.2% and increased 32.4% year-over-year. The reported figure was above the indicative range of $3.80 to $3.90.
Revenue of $861.3 million exceeded the consensus mark by 5% and increased 29.1% year-over-year on a reported basis and 17% on a pro forma and macro-adjusted basis . The reported figure exceeded the indicative range of $805-825 million.
FLEETCOR shares have lost 13.6% in the past year compared to the 25.4% drop in the industry to which it belongs.
Let’s see the numbers in detail:
Income in detail
By segment, North America revenue was $601.7 million, up 35.7% year-over-year. Internationally, revenue of $147.7 million increased 6.8% year over year. Revenue from Brazil increased 30.5% to $111.8 million.
By product category, fuel revenue of $347 million increased 18% year-over-year on a reported basis and 7% on a pro forma and macro-adjusted basis.
Corporate Payments revenue of $189.7 million increased 35% year-over-year on a reported basis and 18% on a pro forma and macro-adjusted basis.
Toll revenue of $91.2 million increased 28% year-over-year on a reported basis and 19% on a pro forma and macro-adjusted basis.
Accommodation revenue of $116.9 million increased 88% year-over-year on a reported basis and 42% on a pro forma and macro-adjusted basis.
Gifts revenue of $51.7 million increased 60% year-over-year on a reported basis and 63% on a pro forma and macro-adjusted basis.
Other income of $65 million decreased 2% year-over-year, but increased slightly 1% on a pro forma and macro-adjusted basis.
Operating results
Operating profit rose 24.5% from the year-ago quarter level to $370.5 million. Operating margin fell 43% from 44.6% in the prior year quarter.
Balance sheet and cash flow
FLEETCOR ended the second quarter of 2022 with cash, cash equivalents and restricted cash of $1.42 billion, compared to $2.09 billion at the end of the prior quarter.
FLT provided $70.4 million of net cash from operating activities. Capital expenditures totaled $35.23 million.
During the current quarter, FLEETCOR repurchased shares worth $372.56 million.
Orientation 2022
The adjusted tax rate is now expected to be between 26.5% and 27.5% compared to the previous range of 26 to 27%. Interest expense is now expected to be between $145 million and $155 million, compared to the previously forecast range of $105 million to $115 million.
Currently, FLEETCOR carries a Zacks Rank #3 (Hold). You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.
FleetCor Technologies, Inc. Price, Consensus, and EPS Surprise
FleetCor Technologies, Inc. price-consensus-eps-surprise-chart | Quote from FleetCor Technologies, Inc.
Performance of Selected Other Business Services Companies
Equifax EFX posted mixed results in the second quarter of 2022, in which earnings beat estimates, but revenue missed the same.
EFX’s adjusted earnings of $2.09 per share beat Zacks’ consensus estimate by 3% and improved 5.6% year-over-year. Revenue of $1.32 billion slightly beat the consensus estimate, but improved 6.6% year over year.
IQVIA Holdings IQV posted strong results in the second quarter of 2022, in which earnings and revenue exceeded the Zacks consensus estimate.
IQV’s adjusted earnings per share of $2.44 topped the consensus mark of 2.1% and improved 15% year-over-year. Total revenue of $3.54 billion beat the consensus estimate of 1.2% and was up 3% year over year.
Omnicom Group OMC released impressive results in the second quarter of 2022, in which earnings and revenue exceeded the Zacks consensus estimate.
OMC’s earnings of $1.68 per share beat the consensus mark of 7.7% and rose 15.1% year-over-year, driven by strong margin performance. Total revenue of $3.6 billion beat the consensus estimate of 4.4%, but was down slightly year over year.
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