Payment products provider and IBD 50 member FleetCor Technologies (FLT) topped earnings estimates for a third straight quarter, but guided low for full-year profit and revenue.
XFleetCor earned $2.50 a share, up nearly 28% vs. a year earlier. Revenue rose to $609.7 million, up 17% vs. a year earlier. Wall Street expected EPS of $2.19 on revenue of $604 million, according to Zacks Investment Research.
The company sees 2018 adjusted EPS of $10.20-$10.50 and revenue of $2.5 billion to $2.6 billion under an old accounting standard, ASC 605. Under the new ASC 606 standard, FleetCor expects to earn $7.55-$7.85 with revenue of $2.39 billion to $2.45 billion.
Analysts, presumably using the old ASC 605 accounting standard, had forecast EPS of $10.81 on revenue of $2.781 billion.
Shares were not yet trading following the earnings release. FleetCor closed down 3 cents to 210.44 on the stock market today.
The stock has been building a 14-week flat base and is nearing an entry point of 213.84. Its relative strength line, which tracks a stock's performance vs. the S&P 500 index, is at an 18-month high.
FleetCor is a specialty payments firms, providing prepaid fuel cards for fleets. It's been expanding into other commercial payments services.
The stock a member of the prestigious IBD 50, a screen of the leading growth stocks. It tracks firms that are showing strong relative price strength and have top-notch fundamentals.
Mastercard (MA) rose 0.4% Thursday, Visa (V) gained 0.6%. Recent Brazilian payments IPO PagSeguro Digital (PAGS), another IBD 50 stock, sank 4.1%. Square (SQ) rose 1.1% reversing higher after reporting weak earnings guidance late Wednesday.
Mastercard And Apprentice
FleetCor Technologies has an impressive IBD Composite Rating of 96 and holds the No. 4 rank among its peers in the Finance-Card/Payment Processing industry group. Mastercard is the No. 1-ranked stock within the group.
Payment stocks have been having a positive earnings season so far, with the likes of Visa entering into a buy zone last week following strong second-quarter results. And Mastercard achieved the same feat Wednesday. Visa and Mastercard are just above entry points.
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The post Top Payments Stock FleetCor Earnings Top, But Guidance Light appeared first on Investor's Business Daily.
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