FleetCor Second-Quarter Results Beat Expectations

Business payments company FleetCor (FLT) ramped up its full-year guidance after markets closed on Tuesday as it reported results for its second-quarter which beat analysts’ views, supported by better-than-expected fuel spreads.

The Peachtree Corners, Ga.-headquartered company posted revenue of $647.1 million, up 11% from the corresponding quarter of the prior year and ahead of the consensus estimate of analysts polled by Capital IQ for $634 million.

Adjusted earnings per share came in at $2.85, up from $2.57 a year earlier and also ahead of the Street’s forecast for $2.80 per share. This was also $0.06 above the mid-point of the company’s guidance for the quarter.

The company said that the macro-economic environment had come in as expected during the quarter, with a benefit from better-than-expected fuel spreads and higher fuel prices offsetting the impact of unfavorable exchange rates.

“For the remainder of the year, we expect the macro impact will be slightly worse than our prior guidance due primarily to lower fuel prices and worse foreign exchange rates,” Eric Dey, chief financial officer of FleetCor Technologies, said.

“We also expect our share count to be slightly higher than the prior guidance primarily due to the increase in our share price. Offsetting these items will be lower interest expense and the impact of acquisitions, which will be slightly accretive over the balance of the year. We expect these assumptions in total to net to approximately zero in terms of rest of year impact to the business,” he added.

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