FLEETCOR Technologies Stock Tumbles After Disappointing Earnings Report

FLEETCOR Technologies, Inc.^(NYSE:FLT), a global business payments company, saw its stock price drop sharply following the opening bell on Thursday. This significant move to the downside was in reaction to the company's reported earnings, which fell short of analysts' forecasts. Previously, shares of FLEETCOR closed at $291.99 but opened the next session at a notably lower $270.50. During the latest trading, the stock was exchanged at around $260.01 with approximately 152,683 shares changing hands.

Quarterly Financial Highlights

The drop in stock price came after the earnings announcement for the quarter revealed earnings of $4.44 per share, which didn't meet the expected consensus of $4.48 per share, missing by $0.04. The company's revenue stood at $937.32 million for the quarter, which also did not reach the analyst projections of $967.01 million. Despite the shortfall, FLEETCOR Technologies saw its revenue increase by 6.1% compared to the same quarter in the previous year, and it reported a substantial return on equity of 38.22% along with a net margin of 26.13%.

Analyst Ratings and Opinions

Coming into the spotlight are various analyst perspectives on FLEETCOR Technologies. Jefferies Financial Group recently raised its price target on the stock from $325 to $330, maintaining a 'buy' rating. William Blair also continued to endorse the stock with an 'outperform' rating. On another positive note, StockNews.com upgraded FLEETCOR from a 'hold' to a 'buy' rating. Conversely, Royal Bank of Canada gave the company a 'sector perform' rating but raised their price target from $270 to $302. Moreover, BMO Capital Markets initiated coverage on FLEETCOR, recommending an 'outperform' rating with a $300 price target. Overall, six analysts have given the stock a hold rating, while ten suggest a buy, rendering FLEETCOR Technologies a 'Moderate Buy' as per the consensus from MarketBeat.com, with an average target price of $292.19.

Institutional Investor Activity

In the realm of institutional investments, there has been noticeable movement in the stock. Vanguard Group Inc., a significant player in the market, increased its holdings in FLEETCOR Technologies by 1.3%, now possessing 8,624,531 shares valued at over $2 billion. Similarly, BlackRock Inc. and JPMorgan Chase & Co. enhanced their positions modestly during the first quarter. Nonetheless, Price T Rowe Associates Inc. MD made a prominent move by almost doubling their stakes, indicating strong institutional confidence in the company.

Company Financial Health and Outlook

FLEETCOR Technologies boasts a solid financial structure with a debt-to-equity ratio of 1.52. Its quick and current ratios both stand at 1.02, reflecting capable short-term liquidity. The firm has a market capitalization close to $19.73 billion, a price-to-earnings ratio of about 20.70, a PEG ratio of 1.34, and exhibits a beta of 1.26. It's worth noting that the company's shares have been averaging around $278.89 over the past 50 days and $261.29 over the past 200 days.

About FLEETCOR Technologies

FLEETCOR Technologies operates as a prominent business payments firm, providing a range of services intended to help companies optimize their expense-related purchases and vendor payments. It offers various corporate payment solutions, including accounts payable automation and Virtual Cards specifically designed for single-use within a set amount and timeframe, which highlights its innovative approach in the finance technology space.

FLEETCOR, earnings, stock, NYSE