Corpay Earnings Surpass Estimates in Q4, Revenues Appreciate 10% Y/Y

Corpay CPAY reported mixed fourth-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate, while revenues missed the same.See Zacks Earnings Calendar to stay ahead of market-making news.CPAY’s earnings per share of $5.36 beat the consensus estimate by a slight margin and increased 20.7% year over year. The total revenues of $1 billion missed the consensus estimate by 1.5% but grew 10.4% from the year-ago quarter.The stock has gained 35.4% over the past three months compared with the 21.9% rise of its industry and the 17.4% growth of the Zacks S&P 500 composite.Corpay, Inc. Price, Consensus and EPS Surprise  Corpay, Inc. price-consensus-eps-surprise-chart | Corpay, Inc. QuoteCorpay’s Segmental ResultsRevenues from corporate payments amounted to $346.2 million, increasing 38% year over year, surpassing our estimate of $324.4 million. Direct business growth, rising demand for the full suite of payment solutions and a surge in cross-border revenues benefit the segment’s revenues.Vehicle payments’ revenues of $497.7 billion declined marginally from the year-ago quarter. This figure missed our estimate of $549.9 million. Consistent strong sales, the array of products and channels and geographic diversification drive the segment’s revenues.Lodging payments posted revenues of $120.9 million, gaining 1% from the year-ago quarter. The reported figure beat our expectation of $113.7 million. Improvement in same-store sales in CPAY’s workforce business fuels the segment’s revenues.CPAY’s MarginsEBITDA increased 12.4% from the year-ago quarter to $571.2 million, missing our projection of $599 million. The EBITDA margin was 55.2%, which moved up 100 basis points from the fourth quarter of 2023 but lagged our estimate of 56.9%.Balance Sheet & Cash Flow of CPAYCorpay exited the fourth quarter of 2024 with cash and cash equivalents of $1.6 billion compared with $1.3 billion in the third quarter of 2024. The long-term debt was $5.2 billion compared with $5.3 billion in the preceding quarter.CPAY generated $648.7 million in cash from operating activities in the quarter. Capital expenditure amounted to $44.1 million.Corpay’s 2025 OutlookFor 2025, CPAY raised the revenue guidance to $4.35-$4.45 billion from the preceding quarter’s view of $3.98-$4.01 billion. The Zacks Consensus Estimate for revenues is $4.45 billion. The guidance for adjusted net income per diluted share was hiked to $20.75-$21.25 from the previous quarter’s view of $18.90-$19.10. The guided range is lower than the Zacks Consensus Estimate for earnings pegged at $21.86 per share.Currently, CPAY carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings SnapshotGartner, Inc. IT reported better-than-expected fourth-quarter 2024 results.IT’s adjusted earnings per share of $5.6 beat the Zacks Consensus Estimate by 69.3% and increased 79.3% from the year-ago quarter. Revenues of $1.7 billion surpassed the consensus estimate by 1.8% and improved 8.2% year over year.Broadridge Financial Solutions, Inc. BR posted impressive second-quarter fiscal 2025 results.BR’s adjusted earnings of $1.6 per share outpaced the consensus mark by 12.2% and increased 69.6% from the year-ago quarter. Total revenues of $1.6 billion surpassed the consensus mark by 3% and rose 12.8% year over year.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report Gartner, Inc. (IT): Free Stock Analysis Report Corpay, Inc. (CPAY): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks