On May 29, 2013, the shares of
FleetCor Technologies, Inc.
) reached a new 52-week high of $87.45. The momentum was driven
by the company's strong first-quarter earnings.
On May 2, 2013, FleetCor reported first-quarter adjusted
earnings of 90 cents, which breezed past the Zacks Consensus
Estimate of 77 cents. Results were up 50% year over year from 60
cents earned in the year-ago quarter.
Operating revenues of FleetCor increased 32% year over year to
$179.8 million in the reported quarter, surpassing the Zacks
Consensus Estimate of $178 billion.
Moreover, FleetCor remaines focussed to grow inorganically.On
Apr 30, 2013, the company announced the acquisition of
CardLink, an Aucklang-based company that issues fuel cards and
undertakes payment processing.
Further, on Mar 26, 2013, FleetCor 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 the company's foray into the Australian market. Earlier, on
Mar 14, FleetCor entered into an agreement to buy the Telenav
enterprise business unit from
) for $10 million.
With respect to earnings trend, FleetCor delivered positive
earnings surprise in all last 4 quarter with an average of
The valuation of FleetCor's shares looks little stretched. The
shares are trading at a 285.3% premium on price-to-book basis and
48% premium on a forward price-to-earnings basis, compared with
the 80% premium on return on equity. Nevertheless, the 1-year
return from the stock is 123.4%, much above S&P's return of
FleetCor currently carries a Zacks Rank #1 (Strong Buy). Other
companies in the miscellaneous financial services industry that
are worth considering are
Daiwa Securities Group Inc.
Grupo Financiero Banorte, S.A.B. de C.V.
Euronet Worldwide Inc.
), all of which carry a Zacks Rank #2 (Buy).
DAIWA SEC GP JP (DSEEY): Get Free Report
EURONET WORLDWD (EEFT): Free Stock Analysis
FLEETCOR TECH (FLT): Free Stock Analysis
GRUPO FIN BANOR (GBOOY): Get Free Report
TELENAV INC (TNAV): Free Stock Analysis
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