FleetCor Technologies, Inc. (NYSE: FLT) stock fell 4.96% in the pre-market session on May 4th, 2018 as they forecasted lower full-year profit and revenue. The company has delivered organic revenue growth rates of more than 20 percent in the Lodging, Corporate Payments and Tolls business lines, as the company continues to execute on the strategies to grow the non-fuel businesses. Overall, in the first quarter of 2018, net income increased by 41.4% to $174.9 million in the first quarter of 2018, compared to $123.7 million in the first quarter of 2017.
FLT in the first quarter of FY 18 has reported the adjusted earnings per share of $2.50, beating the analysts’ estimates for the adjusted earnings per share of $2.19 according to Zacks Investment Research. The company had reported the adjusted revenue growth of 17 percent to $609.7 million in the first quarter of FY 18, beating the analysts’ estimates for revenue of $604 million.
For the full year 2018, FLT expects adjusted earnings per share to be in the range of $10.20-$10.50 and revenue of $2.5 billion to $2.6 billion under an old accounting standard, ASC 605. Under the new ASC 606 standard, FLT expects to earn $7.55-$7.85 with revenue of $2.39 billion to $2.45 billion. Analysts, presumably using the old ASC 605 accounting standard, had forecast earnings per share of $10.81 on revenue of $2.781 billion.
In addition, for the projection for FY 18, FLT has assumed Weighted fuel prices equal to $2.69 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. Market spreads is expected to be equal to the 2017 average. Foreign exchange rates is expected to be equal to the seven-day average as of April 2, 2018. Interest expense is expected to be of $125 million. Fully diluted shares outstanding is expected to be approximately 93.6 million shares. A tax rate of 22 to 24%. However, no impact related to acquisitions or material new partnership agreements not already disclosed
Meanwhile, FLT has extended its European fuel card agreement with Shell. As per the agreement, FLT will continue to manage, operate and sell the Shell fuel card to small-to-medium enterprises (SMEs) across 11 markets in Europe through 2025. Through the extended agreement, FLEETCOR will provide SME customers across Europe with front-end sales and marketing in addition to back-end services including processing, servicing and billing.