What led to FleetCor Technologies, Inc. (NYSE: FLT) stock pressure

Free $100 Forex No-Deposit Bonus

FleetCor Technologies, Inc. (NYSE: FLT) stock lost over 4.8% in the pre-market session of Feb 7th, 2020 (Source: Google finance) after the company posted mixed results for the fourth quarter of FY 19. The company has reported 22% decline in net income to $235.5 million in the fourth quarter of 2019, compared to $302 million in the fourth quarter of 2018. Included in the fourth quarter of 2019, was a gain of about $13 million related to a minority investment and in the fourth quarter of 2018 was a gain of approximately $153 million from the sale of the Chevron portfolio. Therefore, the adjusted net income rose 14% to $286.4 million in the fourth quarter of 2019.

FLT in the fourth quarter of FY 19 has reported the adjusted earnings per share of $3.17, beating the analysts’ estimates for the adjusted earnings per share of $3.14, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 9 percent to $698.88 million in the fourth quarter of FY 19, missing the analysts’ estimates for revenue of $703.9 million.

For fiscal year 2020, FLT expects total revenues to be in the range of $2,900 million and $2,960 million, adjusted net income is expected to be in the range of $1,190 million and $1,230 million and Adjusted net income per diluted share is expected to be in the range of $13.35 and $13.75. 2020 Weighted fuel prices is expected to be equal to $2.78 per gallon average in the U.S., Market spreads slightly unfavorable compared to the 2019 average, foreign exchange rates equal to the 7-day average as of the week ending January 19, 2020, interest expense is expected to be in the range of $130 million and $140 million, approximately 89.5 million fully diluted shares outstanding for 2020 and an adjusted tax rate is expected to be in the range of approximately 20% to 22%.

Meanwhile, the first quarter will be affected by weather, holidays in the U.S., and lower business levels in Brazil, due to summer break and the Carnival celebration that occurs in the first quarter. The first quarter revenue will be also affected by the divestiture of the Chevron portfolio, which was still transitioning in the first quarter of 2019, an unfavorable macro impact versus prior year, and the net impact of share repurchases and the associated interest expense carry versus prior year.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.