Fleetpartners shares rise on strong quarterly earnings

Shares in Fleetpartners surged on Friday after the Australian vehicle leasing company reported stronger-than-anticipated quarterly earnings and raised its full-year guidance.

The company said net profit for the three months ended June 30 rose 15% year-over-year to A$32.4 million, beating analyst estimates of A$28.7 million. Revenue increased 8% to A$187.5 million, driven by higher demand for fleet management services and vehicle leasing.

Fleetpartners also upgraded its full-year profit forecast, now expecting net profit to rise between 10% and 12% compared with a prior range of 5% to 8%. The company cited robust demand in its core Australian market and cost efficiencies as key drivers of the improved outlook.

Analysts at Macquarie maintained a neutral rating on the stock but raised their price target to A$14.50 from A$13.80, citing the earnings beat and improved guidance. The stock was up 4.2% at A$13.95 in mid-morning trading, outpacing the broader S&P/ASX 200 index.

Fleetpartners, which operates one of Australia’s largest fleet management businesses, has benefited from rising business activity and delayed vehicle supply constraints easing. The company’s shares have gained 18% over the past three months, outperforming the sector average.