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Is a Beat in the Cards for FLEETCOR (FLT) in Q2 Earnings?

FLEETCOR Technologies, Inc. FLT is scheduled to release second-quarter 2020 results on Aug 6, after market close.

Let’s check out the expectations in detail.

Q2 Expectations

The Zacks Consensus Estimate for revenues is pegged at $526.84 million, indicating decline of 18.6%  year over year, attributable to weakness across all product categories — fuel, corporate payments, lodging, tolls, and gift, and COVID-19-related shutdowns across the world.

Product category-wise, the consensus mark for Fuel segment revenues is pegged at $239 million, implying a decline of 18.9% from the year-ago quarter’s reported figure. The consensus estimate for Corporate payments segment revenues is pegged at $124 million, indicating decline of 2.4% year over year. The consensus mark for Tolls revenues stands at $66 million, suggesting a decrease of 23.3% from the year-ago quarter’s reported figure. The consensus estimate for Lodging segment revenues is pegged at $33.85 million, indicating decline of 32.3% from the year-ago quarter’s reported figure. The consensus mark for Gift revenues stands at $19.33 million, suggesting a decrease of 45.9% from the year-ago quarter’s reported figure.

Decline in operating margins is likely to have weighed on the company’s bottom line, the Zacks Consensus Estimate for which is pegged at $2.17, indicating a massive decline of 23.9% year over year.

What Our Model Says

Our proven model predicts an earnings beat for FLEETCOR this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

FLEETCOR has an Earnings ESP of +0.83% and a Zacks Rank #2.

FleetCor Technologies, Inc. Price and EPS Surprise

FleetCor Technologies, Inc. Price and EPS Surprise

FleetCor Technologies, Inc. price-eps-surprise | FleetCor Technologies, Inc. Quote

Other Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these also have the right combination of elements to beat on second-quarter 2020 earnings.

Fiserv FISV has an Earnings ESP of +3.14% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Broadridge Financial BR has an Earnings ESP of +2.70% and a Zacks Rank #3.

Waste Connections WCN has an Earnings ESP of +3.33% and a Zacks Rank #3.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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