Why Is FleetCor Technologies (FLT) Up 2% Since Last Earnings Report?

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A month has gone by since the last earnings report for FleetCor Technologies (FLT). Shares have added about 2% in that time frame, underperforming 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 Surpasses Q1 Earnings & Revenues Estimates

FLEETCOR reported impressive first-quarter 2023 results wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate. 

Adjusted earnings (excluding 92 cents from non-recurring items) of $3.8 per share outpaced the Zacks Consensus Estimate by 3% and our estimate by 3.3%. Earnings grew 4.1% year over year.

Revenues of $901.3 million beat the Zacks Consensus Estimate and our estimate by 2.3% and increased 14.2% year over year on a reported basis and 12% on an organic basis.

Revenues in Detail

Product-category-wise, fleet revenues of $372.7 million rose 6% year over year on a reported basis and 3% on an organic basis.  The Corporate Payments segment’s revenues of $227.2 million increased 16% year over year on a reported basis and 19% on an organic basis.

Brazil segment’s revenues of $121.7 million improved 19% year over year on a reported basis and 18% on an organic basis. The Lodging segment’s revenues of $122.3 million grew 29% year over year on a reported basis and 26% on an organic basis. The Other segment’s revenues of $57.3 million increased 1% year over year on a reported and surged 2% on an organic basis.

Operating Results

Operating income increased 18% from the prior-year quarter’s level to $375.2 million. The operating income margin fell 130 basis points to 41.6%, compared with the prior-year quarter.

Balance Sheet & Cash Flow

FLEETCOR exited first-quarter 2023 with cash, cash equivalents and restricted cash of $1.27 billion, compared with $1.44 billion at the end of the prior quarter.

FLT provided $327.7 million in net cash from operating activities. Capital expenditures totaled $36.7 million.

Q2 Guidance

Revenues are expected to be between $930 million and $950 million. The midpoint ($940 million) of the guided range is below the Zacks Consensus Estimate of $946.3 million.

Adjusted earnings per share is expected to be between $4.02 and $4.22. The Zacks Consensus Estimate of $4.23 per share is pegged above the guided range.