Several analysts have boosted earnings estimates for Element Fleet Management for the first quarter of 2019, following the company's Aug. 14 quarterly earnings report.
Equities research analysts at National Bank Financial raised earnings estimates for the fleet management company's shares in a research report, according to Zacks Investment Research. National Bank Financial analyst J. Gloyn now forecasts that the company will post earnings per share of 19 cents Canadian for the quarter, up from their prior estimate of 18 cents. National Bank Financial has a “Sector Perform” rating and a $7 price target on the stock. National Bank Financial also projected that the company will earn 19 cents per share for the second quarter of 2019, reports Fairfield Current.
Several other firms boosted their earnings projections, including Royal Bank of Canada, Cormark, CIBC, Scotiabank, and Barclays.
On Aug. 14, the company reported consolidated net income for the second quarter of 2018 that more than doubled from the prior year, reaching $79.1 million Canadian ($60.4 million). After-tax adjusted second quarter earnings per share for core fleet management operations grew 6% to 19 cents Canadian (15 cents) per share on a constant currency basis, Element reported.
“Our results for the second quarter were in line with expectations and reflect continued progress in operations and customer acquisition and retention,” said Jay Forbes, Element’s chief executive. “Against the backdrop of these positive trends, we have launched a comprehensive strategic assessment to create a clear and compelling strategy for stakeholder value creation. We are delighted with the progress we are making and we look forward to sharing our insights and the resulting strategic priorities in the early fall.”
Element also appointed Forbes as chief executive, Vito Culmone as chief financial officer, and four new independent directors to its board of directors during the quarter.
On Aug. 7, Element priced $1 billion of rated term notes through its Chesapeake Funding II platform in the U.S. The company maintains liquidity and access to capital, with $6 billion Canadian ($4.6 billion) in available financing to fund ongoing originations and growth.
Originally posted on Automotive Fleet