FleetCor beats Wall Street consensus

FleetCor Technologies (NYSE: FLT), which provides fuel cards and workforce payment products and services, beat Wall Street’s consensus estimates for its fourth quarter earnings. Fleetcor’s adjusted diluted earnings per share (EPS) of $2.78 were above the $2.72 consensus estimates according to Seeking Alpha.

In addition, FleetCor reported that its fourth quarter 2018 revenue increased by 5 percent year-over-year (Y/Y) to $643 million from $610 million in the fourth quarter of 2017. This also beat consensus expectations of $620 million according to Seeking Alpha. Adjusted net income for the quarter increased 12 percent year-over-year (Y/Y) from $224 million in 2017 to $252 million in 2018.

Organic revenue growth grew by 15 percent Y/Y in the fourth quarter. In addition, actual leverage ratio decreased in the fourth quarter by almost 3 percent Y/Y, from 2.42 to 2.35.

FleetCor’s success in the fourth quarter of 2018 came from sales bookings increasing by 20 percent, with 30,000 new accounts added to its client list.  

“Full year organic revenue growth across all of our lines up 10 percent; retention above 90 percent taken up to 92 percent in the second quarter. And our two newest acquisitions; STP acquired in 2016 and Cambridge acquired in 2017, both had really terrific performances last year.” said Fleetcor chairman and chief executive officer Ron Clarke.

Business Segment Performance by Non-GAAP Revenue

Fuel and Corporate Payments

Tolls and Lodging

Gift, Other, and Consolidated

Full Year

For full year 2018, adjusted net income was $970 million. The company repurchased 9.026 million shares for $1.549 billion.

2019 Guidance

According to the company, adjusted net income is expected to increase by 5 to 8 percent Y/Y. Revenue is expected to increase 6 to 8 percent Y/Y. Adjusted EPS is expected to grow at 9 to 11 percent.