A month has gone by since the last earnings report for FleetCor Technologies (FLT). Shares have added about 12.7% in that time frame, outperforming 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 Q3 Earnings & Revenues Estimates

FLEETCOR reported solid third-quarter 2022 results as both earnings and revenues surpassed the respective Zacks Consensus Estimate.   

Adjusted earnings (excluding 95 cents from non-recurring items) of $4.24 per share outpaced the consensus estimate by 1.2% and increased 20.5% year over year. The reported figure lies within the guided range of $4.15-$4.25.

Revenues of $893 million beat the consensus mark by 1.8% and increased 18.2% year over year on a reported basis and 5% on a pro-forma and macro-adjusted basis. The reported figure exceeded the guided range of $870-$890 million.

Let’s check out the numbers in detail:

Revenues in Detail

Product-category-wise, fuel revenues of $361.8 million went up 18% year over year on a reported basis and 5% on a pro-forma and macro-adjusted basis.

Corporate Payments revenues of $196.9 million increased 17% year over year on a reported basis and 21% on a pro-forma and macro-adjusted basis.

Tolls revenues of $88.6 million improved 12% year over year on a reported basis and 12% on a pro-forma and macro-adjusted basis.

Lodging revenues of $126 million grew 48% year over year on a reported basis and 28% on a pro-forma and macro-adjusted basis.

Gift revenues of $52 million grew 7% year over year on a reported and 9% on a pro-forma and macro-adjusted basis.

Other revenues of $67.7 million climbed 1% year over year on a reported and 6% on a pro-forma and macro-adjusted basis.

Operating Results

Operating income increased 15% from the prior-year quarter’s level to $389.2 million. Operating income margin fell 43.6% from 44.8% in the prior-year quarter.

Balance Sheet & Cash Flow

FLEETCOR exited third-quarter 2022 with cash, cash equivalents and restricted cash of $1.32 billion compared with $1.42 billion at the end of the prior quarter.

FLT provided $396.8 million of net cash from operating activities. Capital expenditures totaled $41 million.

In the reported quarter, FLEETCOR repurchased shares worth $500.34 million.

2022 Guidance

Adjusted earnings per share are still anticipated between $15.85 and $16.05. 

Revenues are now anticipated between $3.40 billion and $3.42 billion, comparing favorably with the prior-guided range of $3.38 billion and $3.42 billion.

Interest expenses are now expected between $157 million and $167 million compared with the prior-guided range of $145-$155 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

Currently, FleetCor Technologies has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, FleetCor Technologies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

FleetCor Technologies is part of the Zacks Financial Transaction Services industry. Over the past month, Visa (V), a stock from the same industry, has gained 11.4%. The company reported its results for the quarter ended September 2022 more than a month ago.

Visa reported revenues of $7.79 billion in the last reported quarter, representing a year-over-year change of +18.7%. EPS of $1.93 for the same period compares with $1.62 a year ago.

Visa is expected to post earnings of $2 per share for the current quarter, representing a year-over-year change of +10.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Visa. Also, the stock has a VGM Score of B.

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