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FLEETCOR Technologies, Inc. reported solid second-quarter 2021 results as both earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $3.15 per share outpaced the consensus estimate by 7.9% and increased 38.2% year over year. The reported figure lies above the guidance of $2.80-$3.
Revenues of $667.4 million beat the consensus mark by 5% and increased 27.1% year over year on a reported basis and 23% on a pro-forma and macro-adjusted basis.
Quarterly results were backed by the macroeconomic environment of higher fuel prices and favorable foreign exchange rates. The company is witnessing a solid credit performance.
Revenues in Detail
Segment wise, revenues from North America came in at $443.43 million, up 24.1% year over year. Internationally, revenues of $138.29 million increased 49.4% year over year. Revenues from Brazil grew 14% to $85.67 million.
Product-category wise, fuel revenues of $295.1 million went up 18% year over year on a reported basis and 19% on a pro-forma and macro-adjusted basis.
Corporate Payments revenues of $140.4 million increased 52% year over year on a reported basis and 32% on a pro-forma and macro-adjusted basis.
Tolls revenues of $71.3 million improved 10% year over year on a reported basis and 9% on a pro-forma and macro-adjusted basis.
Lodging revenues of $62.2 million grew 53% year over year on a reported basis and 39% on a pro-forma and macro-adjusted basis.
Gift revenues of $32.3 million grew 22% year over year on a reported as well as on a pro-forma and macro-adjusted basis.
Other revenues of $66 million increased 30% year over year on a reported and 25% on a pro-forma and macro-adjusted basis.
Operating Results
Operating income increased 39.8% from the prior-year quarter’s level to $297.61 million. Operating income margin rose to 44.6% from 40.5% in the prior-year quarter.
FleetCor Technologies, Inc. Price, Consensus and EPS Surprise
FLEETCOR exited second-quarter 2021 with cash, cash equivalents and restricted cash of $2.06 billion compared with $1.43 billion at the end of the prior quarter.
The company generated $278.59 million of net cash from operating activities. Capital expenditures totaled $26.2 million.
In the reported quarter, FLEETCOR repurchased shares worth $254.54 million. The company’s board of directors increased its share repurchase program by $1 billion on Jul 27, 2021. Currently, it has $1.6 billion of repurchase capacity.
Third-Quarter 2021 Outlook
For the third quarter of 2021, FLEETCOR expects adjusted earnings between $3.35 and $3.5 per share. The Zacks Consensus Estimate of $3.35 is in line with the lower end of the guidance.
2021 Guidance
For 2021, FLEETCOR raised its guidance. Adjusted earnings per share are now anticipated between $12.80 and $13 compared with the prior guidance of $12.14-$12.70. The Zacks Consensus Estimate of $12.59 lies below the updated guidance.
Revenues are now anticipated in the range of $2.74-$2.79 billion compared with the prior guidance of $2.6-$2.7 billion. The Zacks Consensus Estimate of $2.67 billion lies below the updated guidance.
Interest expenses are now expected between $120 million and $125 million compared with the prior guidance of $110-$120 million. Adjusted tax rate is now anticipated between 21.5% and 22.5% compared with the prior guidance of 19.5-21.5%.
Equifax’s (EFX - Free Report) second-quarter 2021 adjusted earnings of $1.98 per share beat the Zacks Consensus Estimate by 15.8% and improved on a year-over-year basis. Revenues of $1.23 billion outpaced the consensus estimate by 6.4% and improved 26% year over year on a reported basis and 23% on a local-currency basis.
Robert Half’s (RHI - Free Report) second-quarter 2021 earnings of $1.33 per share beat the consensus mark by 26.7% and were up more than 100% year over year. Revenues of $1.6 billion surpassed the consensus mark by 6.5% and increased 42.3% year over year on a reported basis and 40% on an adjusted basis.
ManpowerGroup’s (MAN - Free Report) second-quarter 2021 adjusted earnings of $2.02 per share beat the consensus mark by 68.2% and improved more than 100% year over year. Revenues of $5.28 billion beat the consensus mark by 2% and inched up 41% year over year on a reported basis and 31.3% on a constant-currency (cc) basis.
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FLEETCOR (FLT) Beats on Q2 Earnings & Revenues, Ups 2021 View
FLEETCOR Technologies, Inc. reported solid second-quarter 2021 results as both earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $3.15 per share outpaced the consensus estimate by 7.9% and increased 38.2% year over year. The reported figure lies above the guidance of $2.80-$3.
Revenues of $667.4 million beat the consensus mark by 5% and increased 27.1% year over year on a reported basis and 23% on a pro-forma and macro-adjusted basis.
Quarterly results were backed by the macroeconomic environment of higher fuel prices and favorable foreign exchange rates. The company is witnessing a solid credit performance.
Revenues in Detail
Segment wise, revenues from North America came in at $443.43 million, up 24.1% year over year. Internationally, revenues of $138.29 million increased 49.4% year over year. Revenues from Brazil grew 14% to $85.67 million.
Product-category wise, fuel revenues of $295.1 million went up 18% year over year on a reported basis and 19% on a pro-forma and macro-adjusted basis.
Corporate Payments revenues of $140.4 million increased 52% year over year on a reported basis and 32% on a pro-forma and macro-adjusted basis.
Tolls revenues of $71.3 million improved 10% year over year on a reported basis and 9% on a pro-forma and macro-adjusted basis.
Lodging revenues of $62.2 million grew 53% year over year on a reported basis and 39% on a pro-forma and macro-adjusted basis.
Gift revenues of $32.3 million grew 22% year over year on a reported as well as on a pro-forma and macro-adjusted basis.
Other revenues of $66 million increased 30% year over year on a reported and 25% on a pro-forma and macro-adjusted basis.
Operating Results
Operating income increased 39.8% from the prior-year quarter’s level to $297.61 million. Operating income margin rose to 44.6% from 40.5% in the prior-year quarter.
FleetCor Technologies, Inc. Price, Consensus and EPS Surprise
FleetCor Technologies, Inc. price-consensus-eps-surprise-chart | FleetCor Technologies, Inc. Quote
Balance Sheet & Cash Flow
FLEETCOR exited second-quarter 2021 with cash, cash equivalents and restricted cash of $2.06 billion compared with $1.43 billion at the end of the prior quarter.
The company generated $278.59 million of net cash from operating activities. Capital expenditures totaled $26.2 million.
In the reported quarter, FLEETCOR repurchased shares worth $254.54 million. The company’s board of directors increased its share repurchase program by $1 billion on Jul 27, 2021. Currently, it has $1.6 billion of repurchase capacity.
Third-Quarter 2021 Outlook
For the third quarter of 2021, FLEETCOR expects adjusted earnings between $3.35 and $3.5 per share. The Zacks Consensus Estimate of $3.35 is in line with the lower end of the guidance.
2021 Guidance
For 2021, FLEETCOR raised its guidance. Adjusted earnings per share are now anticipated between $12.80 and $13 compared with the prior guidance of $12.14-$12.70. The Zacks Consensus Estimate of $12.59 lies below the updated guidance.
Revenues are now anticipated in the range of $2.74-$2.79 billion compared with the prior guidance of $2.6-$2.7 billion. The Zacks Consensus Estimate of $2.67 billion lies below the updated guidance.
Interest expenses are now expected between $120 million and $125 million compared with the prior guidance of $110-$120 million. Adjusted tax rate is now anticipated between 21.5% and 22.5% compared with the prior guidance of 19.5-21.5%.
Currently, FLEETCOR carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
Equifax’s (EFX - Free Report) second-quarter 2021 adjusted earnings of $1.98 per share beat the Zacks Consensus Estimate by 15.8% and improved on a year-over-year basis. Revenues of $1.23 billion outpaced the consensus estimate by 6.4% and improved 26% year over year on a reported basis and 23% on a local-currency basis.
Robert Half’s (RHI - Free Report) second-quarter 2021 earnings of $1.33 per share beat the consensus mark by 26.7% and were up more than 100% year over year. Revenues of $1.6 billion surpassed the consensus mark by 6.5% and increased 42.3% year over year on a reported basis and 40% on an adjusted basis.
ManpowerGroup’s (MAN - Free Report) second-quarter 2021 adjusted earnings of $2.02 per share beat the consensus mark by 68.2% and improved more than 100% year over year. Revenues of $5.28 billion beat the consensus mark by 2% and inched up 41% year over year on a reported basis and 31.3% on a constant-currency (cc) basis.