FleetCor shares soar on high fuel costs, bullish forecast (NYSE:FLT)

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FleetCor Technologies (NYSE: FLT) advances on strong earnings growth and better-than-expected guidance Friday.

For the first quarter, the Atlanta-based fuel card company reported non-GAAP EPS of $3.65 and revenue of $789.24 million, both above analysts’ expectations.

“Fuel prices were $3.88 per gallon for the quarter, which is above our guidance assumption of $3.40 based on January levels,” Chief Financial Officer Charles Freund told analysts on Thursday. . “Rising fuel prices generated approximately $22 million in additional revenue over the prior year.”

For the full year, helped in part by high fuel costs, management forecast between $3.335 billion and $3.385 billion, well above the Wall Street consensus of 3.26 billions of dollars. Meanwhile, adjusted net earnings per diluted share are expected to be between $15.45 and $15.75 compared to the previous consensus of $15.49.

This guide is also somewhat conservative as the company assumes $3.90 as its fuel price assumption for the rest of the year, a figure that marks a noticeable drop from current levels.

“Obviously we don’t expect fuel prices to stay at the current high levels,” Freund said. “So we use this forward curve as the basis for our forecast.”

Shares were up nearly 7% in premarket trade on Friday after falling from a tumultuous trading day on Thursday.

Read the earnings transcript here.