Why FleetCor Technologies, Inc. (NYSE: FLT) stock is rising

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FleetCor Technologies, Inc. (NYSE: FLT) stock rose 6.3% on Feb 7th, 2019 (Source: Google finance) after the company posted better than expected results for the fourth quarter of FY 18. Net income rose 7% to $302.0 million in the fourth quarter of 2018, compared to $282.7 million in the fourth quarter of 2017. Included in the fourth quarter of 2018, was a gain of approximately $153 million from the sale of the Chevron portfolio. Included in the fourth quarter of 2017 was the favorable impact of adoption of the Tax Reform Act of $127.5 million. FLT experienced a mixed macroeconomic environment in the fourth quarter of 2018 compared with the fourth quarter of 2017. Movements in foreign exchange rates were primarily negative with most of the impact from the Brazilian reais as the currency was down roughly 15% from the fourth quarter of 2017.

FLT in the fourth quarter of FY 18 has reported the adjusted earnings per share of $2.78, beating the analysts’ estimates for the adjusted earnings per share of $2.71. The company had reported the adjusted revenue growth of 11 percent to $643.4 million in the fourth quarter of FY 18, beating the analysts’ estimates for revenue of $619.9 million. The fuel card organic revenue growth accelerated to 9%. Obviously, overall Q4 revenue particularly strong first-off because the fuel card growth did normalize into the high-single digits. The corporate pay business rocked, up 24%. The lodging business continued its healthy small business room night growth. Room night’s up 22%. That resulted in 19% overall lodging growth if you exclude FEMA. Same-store sales, grew 1%, overall client retention was 92% and new sales, new bookings hit record levels finishing up 20% during the quarter.

For FY 19, FLT expects the total revenues to be between $2,570 million and $2,630 million, adjusted net income to be between $1,015 million and $1,045 million and adjusted net income per diluted share to be between $11.40 and $11.70. Further for 2019, the company expects weighted fuel prices equal to $2.60 per gallon average in the U.S. for those businesses sensitive to the movement in the retail price of fuel for the balance of the year. The company also expects interest expense of $160 million and an adjusted tax rate of 23% to 24% for 2019.

FLT for the first quarter of 2019, expects adjusted net income per diluted share to be between $2.55 and $2.65.

 

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