Corpay Q4 2022 Earnings Report
Key Takeaways
FLEETCOR Technologies reported a 10% increase in revenue to $883.6 million for Q4 2022. Net income remained relatively flat at $225.3 million, while adjusted net income decreased by 2% to $300.2 million. The company's full-year performance for 2022 was strong, with a 21% increase in revenue and a 22% increase in adjusted earnings per share.
Revenues increased by 10% to $883.6 million compared to Q4 2021.
Net income was $225.3 million, consistent with the $225.0 million reported in Q4 2021.
Adjusted net income decreased by 2% to $300.2 million compared to Q4 2021.
Adjusted net income per diluted share increased by 9% to $4.04.
Corpay
Corpay
Corpay Revenue by Segment
Corpay Revenue by Geographic Location
Forward Guidance
FLEETCOR Technologies, Inc. anticipates delivering organic revenue growth of 9% to 11% for the full year 2023, with EBITDA growing faster. The company expects first quarter revenues between $875 million and $890 million, and adjusted net income per diluted share between $3.55 and $3.75.
Positive Outlook
- Targeted organic revenue growth of 9% to 11% for 2023.
- EBITDA is expected to grow faster than revenue.
- Sales growth of approximately 15%.
- Volumes and revenue should build throughout the year.
- Benefit from growth investments, acquisitions and seasonality.
Challenges Ahead
- Significantly higher interest rates on floating rate debt are a headwind to net income in the first quarter of 2023.
- Company has historically experienced seasonality in the first quarter.
- Fuel, lodging and tolls tend to have lighter first quarters due to weather and holidays.
- Weighted average U.S. fuel prices equal to $4.00 per gallon.
- Market spreads flat with the 2022 average.
Revenue & Expenses
Visualization of income flow from segment revenue to net income