On Sep 12, Zacks Investment Research upgraded
FleetCor Technologies, Inc
) to a Zacks Rank #1 (Strong Buy).
CIT GROUP (CIT): Free Stock Analysis Report
FLEETCOR TECH (FLT): Free Stock Analysis
FINANCIAL ENGIN (FNGN): Free Stock Analysis
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Why the Upgrade?
FleetCor Technologies has witnessed rising earnings estimates on
the back of solid second quarter 2013 results and an enhanced
guidance for fiscal 2013. Moreover, this financial service
provider delivered positive earnings surprise in the last 4
quarters with an average beat of 9.8%. The long-term expected
earnings growth rate for this stock is 16.1%.
FleetCor Technologies reported second quarter results on Aug 1.
Non-GAAP earnings per share came in at 97 cents, surpassing the
Zacks Consensus Estimate of 88 cents by 10.2% and year-ago
earnings of 70 cents by 38.6%.
Earnings were primarily aided by solid top-line growth of 28.5%.
The quarter also marked record revenues and profits.
FleetCor Technologies also signed two new agreements - with Husky
Oil of Canada and Visa Europe. The company also extended its
association with Shell in the U.S.
Based on its progress, the company raised its earnings projection
for fiscal 2013 to $322-$327 million or $3.82-$3.87 per share
from $310-$320 million or $3.70-$3.80 per share. Revenue guidance
was raised to $825-$835 million from $810-$820 million.
The Zacks Consensus Estimate for 2013 increased 3.6% to $3.72 per
share as all four estimates were revised higher over the last 60
days. For 2014, all estimates were revised higher over the same
time frame, lifting the Zacks Consensus Estimate by nearly 5% to
$4.28 per share.
Recently, FleetCor Technologies announced that it acquired
Brazil's VB Servicos, Comercio e Administracao LTDA ("VB") and
inked a deal to acquire Brazil's DB Trans S.A. ("DB"). Purchase
considerations totaled $300 million. The acquisitions are aimed
at capitalizing on growth opportunities in the Brazilian market.
Other Stocks to Consider
Financial service providers
CIT Group Inc
SS&C Technologies Holdings, Inc.
Financial Engines, Inc
) with Zacks Rank #2 (Buy) are also performing well and are worth