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

Corpay (CPAY Quick QuoteCPAY – Free Report) reported mixed fourth-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate, while revenues missed the same.

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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’s Segmental Results

Revenues 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 Margins

EBITDA 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 CPAY

Corpay 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 Outlook

For 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 Snapshot

Gartner, Inc. (IT Quick QuoteIT – Free Report) 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 Quick QuoteBR – Free Report) 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.