FLEETCOR Technologies, Inc. (NYSE: FLT), a fuel card and business payments provider, announced third quarter 2019 adjusted earnings per share (EPS) of $3.10, 16% higher year-over-year and a nickel better than the consensus estimate.
Total net revenue in the third quarter of 2019 increased 10% year-over-year to $681 million.
Net revenue from the company's fuel card program increased 4% to $296 million as fuel revenue per transaction increased 5% and was only partially offset by a modest decline in the total number of transactions. On the company's earnings call, management acknowledged the softness seen in the trucking markets domestically and abroad.
Toll net revenue increased 16% to $89 million in the period as average tags per month increased 9% and net revenue per tag climbed 8%.
On a consolidated basis, adjusted net income increased 14% year-over-year to $281 million.
FLEETCOR's Key Performance Indicators
The company increased its full year 2019 earnings guidance to an adjusted EPS range of $11.68 to $11.78 (prior $11.53 to $11.83). Total revenue guidance was tightened to a range of $2.64 billion to $2.66 billion (prior $2.625 billion to $2.675 billion) to reflect less favorable macroeconomic conditions relative to management's original expectations. The new guidance is in line with current consensus estimates calling for revenue of $2.65 billion and EPS of $11.74.
"The third quarter was another great quarter for the company. During the quarter, our revenues and profits finished above our expectations, with adjusted net income per diluted share of $3.10, which was $0.05 above the midpoint of our guidance for the quarter," said FLEETCOR's Chairman and CEO Ron Clarke.
The company's significant growth has been achieved through a number of acquisitions. In 2014, the company acquired Comdata, the largest over-the-road fuel card provider, for nearly $3.5 billion.
"We have plenty of liquidity to pursue other acquisition opportunities as well as share buybacks," said Clarke.
FLEETCOR increased its share repurchase program by $1 billion and extended the term by three years. The company is authorized to repurchase nearly $1.5 billion of its common stock by February 2023.
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