On Apr 10, 2013, shares of
FleetCor Technologies, Inc.
) hit a 52-week high of $78.87.
FleetCor remains focused to grow inorganically. On Mar 26,
2013, the company announced the acquisition of Fleet Card - a
multi-line fuel card - from the custom fleet leasing business of
GE Capital Australia. This transaction will mark FleetCor's foray
into the Australian market. Also, the transaction is expected to
be accretive by about 3 cents per share to adjusted earnings.
Earlier, on Mar 14, FleetCor entered into an agreement to buy
the Telenav enterprise business unit from
) for $10 million.
FleetCor expects to earn revenues of $190-$194 million in
2013. Moreover, earnings per share are guided in the range of
$3.61 to $3.69 per share.
With respect to earnings trend, the company delivered positive
earnings surprise in 3 out of 4 quarters in 2012 with an average
beat of 10%. The Zacks Consensus Estimate of for the first
quarter of 2013 is currently pegged at 77 cents, reflecting a 40%
The valuation of FleetCor's shares looks stretched. The shares
are trading at a larger premium on both price-to-book and forward
price-to-earnings basis, compared to the 25% premium on return on
equity. Nevertheless, the 1-year return from the stock is 103.2%,
much above S&P's return of 16.7%.
FleetCor carries a Zacks Rank #3 (Hold). Other companies worth
considering in the financial sector are
Euronet Worldwide Inc.
SS&C Technologies Holdings, Inc.
). Both these companies carry a Zacks Rank #1 (Strong Buy).
EURONET WORLDWD (EEFT): Free Stock Analysis
FLEETCOR TECH (FLT): Free Stock Analysis
SS&C TECHNOLOGS (SSNC): Free Stock Analysis
TELENAV INC (TNAV): Free Stock Analysis
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