Fleetcor Technologies Inc (NYSE:FLT) stock fell 6.92% (As on February 8, 11:19:48 AM UTC-4, Source: Google Finance) though the company posted a 9% jump in its fourth-quarter adjusted profit, helped by higher spending from its customers. Firming bets of a soft landing have eased fears of a recession and encouraged businesses to spend on employee travel and other corporate activities, boosting earnings of companies such as Fleetcor. The company’s fleet segment, which lets governments and business entities that operate vehicle fleets track and manage payments for fuel, generates majority revenue. On an adjusted basis, the company’s profit was $326.1 million, or per share, for the three months ended Dec. 31, compared with $300.2 million, or $4.04, a year earlier.

FLT in the fourth quarter of FY 23 has reported the adjusted earnings per share of $4.44, missing the analysts’ estimates for the adjusted earnings per share of $4.48. The company had reported the adjusted revenue growth of 6 percent to $937.3 million in the fourth quarter of FY 23, missing the analysts’ estimates for revenue of $970.3 million. EBITDA increased 11% to $508.1 million in the fourth quarter of 2023, compared to $459.3 million in the fourth quarter of 2022.

Additionally, the Company repurchased approximately 0.6 million shares in the fourth quarter of 2023 and a total of 2.6 million shares for $687 million for the year. Additionally, in December, the Company entered into $500 million of interest rate swaps to replace the swap that expired in December. The Company has now fixed approximately 60% of the floating rate debt in its Credit and Securitization Facilities. On January 31, 2024, the Company closed on an amendment to its pro rata Term Loan A and Revolver A Credit Facility. The transaction results in a $600 million increase in the Company’s capacity under its revolver. Interest rate and maturity terms remain consistent with the existing credit facilities.

In addition, the Company expects to enter into a 10b5-1 plan, which supports the Company’s plan to repurchase up to $800 million of shares during 2024. On January 25, 2024, the Board authorized an increase to the aggregate size of the Company’s Share Repurchase Program by $1.0 billion, with approximately $1.6 billion remaining, and extended the Program through February 4, 2025.

For Q1, the company expects adjusted EPS of $4.02 and $4.12 on revenue of $925 million to $945 million. The consensus is for normalized EPS of $4.41 on revenue of $979.9 million.

The company also forecast adjusted net income per diluted share between $19.20 and $19.60 for 2024 on revenue of $4.04 billion to $4.12 billion. Analysts were expecting $19.34 per diluted share on revenue of $4.14 billion, according to LSEG data.