Benzinga | Feb 3, 2021 10:04AM EST

Preview: Fleetcor Technologies's Earnings

On Thursday, February 04, Fleetcor Technologies (NYSE:FLT) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on management's projections, Fleetcor Technologies analysts model for earnings of $2.82 per share on sales of $603.24 million. In the same quarter last year, Fleetcor Technologies posted EPS of $3.17 on sales of $698.88 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Thursday, quarterly profit would be down 11.04%. Revenue would have fallen 13.68% from the same quarter last year. Fleetcor Technologies's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 2.65 2.24 2.83 3.13EPS Actual 2.80 2.28 3 3.17Revenue Estimate 581.36 M 535.59 M 650.31 M 705.55 MRevenue Actual 585.28 M 525.15 M 661.09 M 698.88 M

Stock Performance

Shares of Fleetcor Technologies were trading at $254.83 as of February 02. Over the last 52-week period, shares are down 22.61%. Given that these returns are generally negative, long-term shareholders are probably down going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Fleetcor Technologies is scheduled to hold the call at 17:30:00 ET and can be accessed here.