Fleetcor Technologies Inc., a global commercial fuel card and business payments provider, announced a 30 percent year-over-year rise in sales from $609 million in the first quarter of 2021 to $789 million in the first quarter of 2022 on Thursday. In the fourth quarter of 2021, the company reported a similar 30 percent year-over-year increase.
“We reported an outstanding first quarter, with solid core trends driving revenue and adjusted net income per share growth of 30% and 29%, respectively,” said Ron Clarke, chairman, and CEO, in a statement.
Adjusted earnings per share (EPS) increased by 29%, from $2.82 in the first quarter of 2021 to $3.65 in the first quarter of 2022. The Atlanta-based company’s retention rate remained stable at 93 percent, while net income grew 18 percent year on year to $218 million in the first quarter.
Clarke described Q1 as “terrific” and “one of the strongest quarterly results that I can recall” during the earnings call on Thursday.
Fleetcor (NYSE: FLT) reported $319 million in gasoline transaction revenue, a 22 percent increase year over year. Revenue per fuel transaction increased by 15% in Q1 compared to 2021, reaching $2.73 per transaction.
“Our companies demonstrated excellent momentum as a result of the focus and efforts we’ve put in place over the last year or two, as well as the benefit of increased fuel costs,” Fleetcor CFO Charles Freund said.
Speedway, one of Fleetcor’s top North American retail partners, has extended its engagement with the company, according to Clarke.
Clarke stated that when it comes to electric automobiles, “we’re going on offense.” Fleetcor intends to service its customers and maintain revenue growth by expanding its EV capabilities. Clarke believes the corporation may generate some more money by repurposing its EV assets.
“We anticipate that our outstanding performance will continue, and we are boosting our projection to reflect our first-quarter outperformance and our updated view,” Clarke said.
Outlook for Q2 and 2022
Fleetcor anticipates sales in the second quarter of $805 million to $825 million. It forecasts adjusted earnings per share of $3.80 to $3.90.
“We expect underlying trends from the first quarter to continue in the second quarter, thus the forecast for the rest of the year remains optimistic.” We also anticipate a significant tailwind from the macro environment, notably fuel prices and foreign exchange rates. “Our revised assumptions include greater interest expense and a higher tax rate, and we are raising our outlook as a result of these factors,” Freund said in a statement.
